AGCS plans to grow its alternative risk transfer (ART) team with 20 new positions in order to improve its delivery across all areas from modelling and underwriting to legal expertise and claims.
The carrier plans to target growth opportunities in captive solutions including fronting, as well as structured solutions. It said structured solutions are a growth area for AGCS’s ART team.
Brian McNamara, AGCS’ Head of Captive Solutions based in Bermuda, said: “In the past two years many organisations turned to captives by establishing new in-house insurance programmes or expanding existing ones by adding new lines of coverage such as cyber or even third-party risk from customers or suppliers.
“We can help captive parents get the most out of their captive and maximizing the benefits of self-insurance leveraging our captive expertise in combination with our wider alternative risk transfer capabilities.”
AGCS’ ART line of business contributed about 5% to the companies’ global net premium volume in 2021, and the insurer said it was making the investment to support portfolio growth and provide more capacity in the ART segment to “harvest” market opportunities.
The company highlighted that the underwriting process is important to the success of its ART function.
It has a multi-disciplinary teams of underwriters, modelers, actuaries, accountants and legal specialists who work together when designing a customised ART solution for a company.
Grant Maxwell, global head of ART, highlighted the structured cover it has developed for the North American commercial auto market an example to illustrate the importance of these solutions.
“US trucking firms were struggling with strong premium increases from a market that was changing rapidly, leading to unsustainable auto liability programmes,” he said.
“We combined various excess placements with structured multi-year features linked to the actual loss performance. This allowed firms who were confident in their loss performance to share in the benefits and be able to purchase higher liability limits.”
Grant Maxwell was gueat co-host of GCP #65 in April 2022. Listen to the episode below or on any podcast app.