- By David Eliot
- 10 July 2019
In the energy and terrorism sector, Miller is seeing consistent demand for specialist placements in London. Here’s a taste of what our teams have been working on with our North American intermediaries.
Case study 1: US regulated utility turns to Miller
Challenge: A US regulated utility was being offered significant double-digit rate increases despite a clean year of account. They had not budgeted for such an increase and were facing the choice of having to buy less insurance coverage.
Solution: The insured changed their London wholesale broker to Miller with a BOR three days prior to inception. We were able to leverage our market relationships and restructure the placement to materially reduce the increases to the insured.
Outcome: We were able to provide as expiring coverage within the confines of the insured’s budget.
Case study 2: International renewables placement for a US power generator
Challenge: A US thermal power generation company made their first renewable energy acquisition outside of the US. The existing panel of carriers were unable to support due to territory and occupation.
Solution: Miller placed a comprehensive policy for the assets utilising London renewables markets.
Outcome: This was in a competitive situation and Miller’s offering provided competitive terms and pricing. The client now has confidence they can seek investments outside the US.
Case Study 3: Improvements to placements following US midstream company buyout
Challenge: A US midstream company with a Gulf of Mexico tier 1 wind exposure was purchased by a private equity company. The existing cover was placed in London 100%. The new owner wanted to cancel and re-write the existing policy midterm as it felt there were deficiencies in the current coverage limits.
Solution: Miller was awarded a BOR by the new retail broker. We re-marketed the account sourcing more competitive capacity. Miller successfully increased sub-limits on the account whilst reducing the
overall rate for the insured in a hardening market.
Outcome: The private equity firm and retail broker can change programmes in a short timeframe for new acquisitions.
Contact Dan
Case study 4: Stadium terrorism liability
Elsewhere, our Terrorism team has been seeing a steady flow of terrorism liability placements for the stadiums of major sporting teams in the US and Canada. Two NFL teams, an NHL Ice Hockey team, and a tennis tournament have all been insured by the London Market through Miller.
The certainty of cover and first/third party terrorism liability options make this a no-brainer for most sports teams in today’s environment. Terrorism placements often prompt discussions on purchasing active assailant cover, which is a natural next step.
On one of these accounts, Miller was asked to take over the placement from another London broker and we were able to secure considerably better pricing. This led to the insured doubling their limit, meaning the coverage was considerably more affordable, providing ‘more bang for their buck’.
If you would like to discuss your clients’ terrorism and/or active assailant coverage, contact David Eliot.
