Speciality MGA Fiducia has teamed up with Lloyd’s insurer Atrium Underwriting on a new terrorism product which it says will give regional brokers the ability to access market leading terror cover which, critically, covers for business interruption.
The Leeds-based MGA, which specialises in marine and freight, has developed the terrorism and sabotage policy with Atrium, and says the new product takes into account the changing risks associated with modern terror threats.
While Pool Re provides coverage in the UK where an insured’s building suffers physical damage, there is now a “real demand” for terrorism cover which goes above and beyond the scheme in covering for business interruption, Fiducia said in a statement.
“Following previous terrorism events, 70% of the companies that went out of business due to the after effects had suffered no physical damage or loss,” David Heeney, underwriter at Fiducia, said, pointing to the Manchester Arena and London Borough Market attacks. “They simply were unable to access their buildings and the area, which had been popular with visitors, no longer held any attraction so business was dramatically reduced.”
While Lloyd’s underwriters have been providing cover with extensions for business interruption, denial of access and loss of attraction, regional brokers have not really had the ability to access it until now, he went on to say.
“Understanding the benefits of having a standalone terrorism policy is a difficult proposition for many clients but we at Fiducia have developed, for UK regional brokers, a market leading terrorism product to assist them in engaging with clients who feel their property and assets may not be vulnerable to an act of terrorism.”
Fiducia, which counts
Hiscox as its sponsoring managing agent, was started by CEO Gerry Sheehy in November last year.
Sheehy, who has more than 30 years’ industry experience and was a founding shareholder and executive director of Northern Marine Underwriting, told
Insurance Business in an interview that one of the MGA’s key selling points is that it is not looking for distribution from the national brokers.
“That has real appeal,” he said, pointing also to the specialist nature of the company’s staff, which includes former chairman of the Leeds Marine Insurance Association, Lance Carter.
“There was a lot of preparatory work before we set the business up and running,” Sheehy said of the early beginnings of the young company. “Essentially the main focus of business [back at launch] was something that represents my background which is marine transit.”
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