Willis Re Launches $400 Million Global Facility to Tackle Catastrophic Casualty Loss
May 13 2015 - 2:00AM
Willis Re, the reinsurance division of Willis Group Holdings plc
(NYSE:WSH), the global risk advisory, re/insurance broking, and
human capital and benefits firm, has today announced the
establishment of a unique syndicated reinsurance facility providing
the broadest protection available for insurers against catastrophic
and systemic loss accumulations arising from liability portfolios.
Named PRIMO, the facility responds to increasing concern around
accumulation and systemic risk at a time when insurers are
retaining more liability exposure than ever before: while greater
scale and diversification help to manage expected loss they also
magnify unexpected systemic exposures and accumulation risk in an
increasingly complex and interconnected world.
Designed to respond across all casualty and professional lines,
and initially supported by 20 of the world’s leading reinsurers,
the new global facility is an industry-first for casualty cover in
providing over $400 million of reinsurance capacity worldwide on
the basis of pre-agreed contract wording. In addition, PRIMO not
only streamlines the process of building reinsurance to address
complex tail exposure but, through syndication, delivers depth to
the market, ensuring competitive pricing and cross-cycle
resilience.
Commenting on the launch, John Cavanagh, Global CEO of
Willis Re, said: “PRIMO builds on over 25 years of
continuous research and development since its precursor was
developed in the late 1980s. Willis Re can now offer our diverse
and global clients a tried and tested reinsurance solution
protecting against events that impact multiple accident years,
create quarter-on-quarter earnings pressure and represent a
significant unknown in terms of quantum from the time the event is
discovered until it becomes a paid loss.”
Andrew Newman, Head of Global Casualty at Willis Re,
said: “While the first-party risks from earthquake, wind,
flood and other manmade perils are well served by property
catastrophe reinsurance markets, until today third-party casualty
risks have been considerably less well served. While conventional
clash reinsurance products can respond well to certain threat
scenarios such as industrial accidents, or earthquake threat to
workers compensation, they are not designed to and do not offer
broad systemic protection. Now, for the first time, meaningful
catastrophic reinsurance protection is available, and affordable,
for writers of casualty business, including all financial and
injury-based lines.”
David Marra, Chief Underwriting Officer – Casualty &
Specialty, RenaissanceRe, said: “We are pleased to support
the evolution of the PRIMO facility to offer meaningful casualty
catastrophe coverage to P&C companies around the world.
RenaissanceRe has been involved with its precursor for over 10
years as it responded to catastrophic casualty events, and we are
delighted to bring solutions to a wider number of clients through
PRIMO.”
Simon Bird, Head of Casualty Treaty at BRIT Syndicate
2987, said: “The PRIMO facility demonstrates the ability
of the reinsurance market to offer both significant capacity in
terms of quantum and a structure designed to give broad
coverage. As such it delivers a meaningful tool whereby
casualty aggregations, both known and unknown, can be more
effectively managed.”
About Willis Re
One of the world's leading reinsurance brokers, Willis Re is
known for its world-class Analytics capabilities, which it combines
with its Reinsurance expertise in a seamless, integrated offering
that can help clients increase the value of their businesses.
Willis Re serves the risk management and risk transfer needs of a
diverse, global client base that includes all of the world's top
insurance and reinsurance carriers as well as national catastrophe
schemes in many countries around the world. The broker's global
team of experts offers services and advice that can help clients
make better reinsurance decisions and negotiate optimum terms. For
more information, visit www.willisre.com.
About Willis
Willis Group Holdings plc is a global risk advisory,
re/insurance broking, and human capital and benefits firm. With
roots dating to 1828, Willis operates today on every continent with
more than 18,000 employees in over 400 offices. Willis offers its
clients superior expertise, teamwork, innovation and market-leading
products and professional services in risk management and transfer.
Our experts rank among the world’s leading authorities on
analytics, modeling and mitigation strategies at the intersection
of global commerce and extreme events. Find more information at our
website, www.willis.com, our leadership journal, Resilience, or our
up-to-the-minute blog on breaking news, WillisWire. Across
geographies, industries and specialisms, Willis provides its local
and multinational clients with resilience for a risky world.
Media:
Laura Molloy
+44 20 3124 8555
Email: Laura.Molloy@willis.com
Investors:
Peter Poillon
+1 212 915 8084
Email: Peter.Poillon@willis.com