Review
The business – Amlin Bermuda
Client service
The majority of Amlin Bermuda’s direct business is sourced through global brokers operating in the London subscription market, complementing our relationships established with Syndicate 2001. Unlike Amlin London, Amlin Bermuda does not act as lead underwriter on any risks but participates in the following market for pricing and setting terms.
The graph below shows the continuity of broker relationships. Amlin Bermuda commenced operations at the end of 2005 and its first full year of writing business was 2006. Renewal retention rates were 80% in 2007 and 94% in 2008.
Leveraging experience
Amlin Bermuda shares many of the attributes of Amlin London. Importantly brokers and clients recognised from the outset that they were not dealing with simply another new Bermudian company. Rather they were dealing with a known entity: underwriters who inherited and shared the well-proven underwriting approach of Syndicate 2001. At the launch of Amlin Bermuda, London treaty reinsurance brokers were advised that, for the foreseeable future, the company would only transact business through them. Accepting business in this manner, has meant that well seasoned business has been written for clients with whom the Group already has long term relationships.
Financial strength
Amlin Bermuda’s financial strength ratings reflect balance sheet strength, superior strong relationships with broker distribution channels established through Syndicate 2001, a prudent approach to underwriting and Amlin Bermuda’s core status within the Amlin group. In particular, the ‘A’ rating, assigned by AM Best in October 2007, was instrumental to the expansion of the North American account in 2008. Our Standard & Poor’s rating of ‘A’ was unique to the Class of 2005 and was pivotal in the expansion of our worldwide business. Ratings are a key business differentiator, particularly in the context of a turbulent global economy and the financial difficulties experienced by a number of market participants.
Claims service
The Bermudian claims settlement process differs from the London market process. Claims authority is not delegated to either the lead underwriter or to third party service providers. This brings additional administration but also means that direct control is maintained over all claims. We will communicate and exchange information with London claims practitioners but ultimately we will make our own coverage decisions on our claims.
We receive many of our claims advices direct from US brokers rather than via London brokers. This helps to reduce ‘end to end’ turnaround times, which are the cornerstone of service standards. For the last quarter of 2008, which included intense activity on hurricane payments, it took an average of 3.9 working days from receipt of the payment request to review, adjust and process claims payments, while it took an average of 5.3 working days from receipt of payment request by Amlin Bermuda until the broker had received payment. The average times for Hurricane Ike payments were 3.4 and 4.6 days. We are constantly looking for ways to improve claims service while retaining the quality of the adjustment and agreement processes.
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