Review
The business – Amlin UK
Product range
Amlin UK writes a balanced portfolio of motor and liability business, combined with a growing property account. Catastrophe risk is reinsured, so inherently the business profile is attritional in nature.
Under the Summit at Lloyd’s brand we underwrite a wide range of commercial motor fleet classes, including coach, haulage, commercial vehicle and company executive fleets. UK motor risk covers fire, theft, collision, third party property and bodily liability injury.
Claims frequency has improved in recent years, due to improvements in vehicles and road safety, but can fluctuate due to factors such as weather conditions. UK inflation is also a key factor in determining claims size. For example, car values affect the quantum of theft claims and physical damage claims are linked to repair costs. Under UK law, third party liability coverage is unlimited, but matching reinsurance is purchased. We also purchase reinsurance to limit the impact of bodily injury claims and catastrophe damage (e.g. UK flood).
Employers’ liability insurance protects employers against accident or injury to employees. It is written on a ‘losses occurring’ basis, covering events that occurred in the policy period even if they are not notified until after expiry. Public liability insurance covers accident or injury occurring to clients, customers or other third parties as a result of contact with the insured’s personnel, property or products.
Professional indemnity policies cover liabilities that may arise from services provided by the assured, for example as a result of negligence or error, which may lead to financial or physical loss. This includes services from architects, surveyors, advertising firms, medical professionals and financial advisors. This business is written on a ‘claims made’ basis covering losses notified in the policy period. A small financial institutions account is also written covering fidelity, professional indemnity and directors’ and officers’ liability for companies providing financial services. However, we do not underwrite institutions with material US exposures.
UK property covers buildings and contents against perils such as fire, theft and flood. This book has experienced recent growth, following the acquisition of Allied Cedar in July 2007 and the strengthening of our marketing capability. We also offer a combined package of insurance for our clients covering a combination of motor, property or liability classes.
Control of expense ratios is critical in the market, particularly when underwriting is pro-cyclical. Our growth in the liability classes, and more recently property, has allowed core overheads to be spread across a greater premium base.
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