The insured, a cigar production company, had been unable to secure the required capacity for wind exposure from the domestic market, so our producing intermediary client over the years had built a position to secure capacity utilising the cargo/stock throughput market.
In recent years, extreme hurricane losses have made underwriters significantly reduce their CAT exposure. Additionally tobacco accounts have experienced large fire and theft losses. Underwriters have therefore been reviewing their appetite.
Consequently some underwriters declined to renew.
Despite these challenges, the cargo team achieved the renewal with limits of USD50m for Caribbean and Florida wind, after approaching over 50 markets in London and Europe, as well as bettering domestic markets on price.