Matthew Maxwell Leading Class Underwriter

Claims service makes the difference
In 1999, Amlin assumed the lead and restructured a programme to provide cover to franchised dealers supplying heavy equipment to the logging industry in the United States. They are thus able to offer point-of-sale physical damage insurance for forestry and construction equipment, extended service contracts for heavy equipment and loss damage waivers for rental equipment.

Logging is a major US industry and this programme covers around 25% of the physical damage cover to heavy equipment in that industry. Logging is also highly sensitive to economic change and runs on tight margins.

Our insureds, both individuals and companies, are often highly leveraged and, with machines costing between US$50,000-US$250,000 each, plant represents a significant proportion of their assets.

Income is measured by the hour and they need to operate machinery around the clock in order to realise acceptable profits.

Amlin’s underwriting and claims professionals, in consultation with specialist Lloyd’s broker, EPG Insurance Services, constructed a coverholder programme through EPG Memphis in which the speed and efficiency of the claims service was a primary driver. From the outset, the team appointed a specialist advisor, Southern States Claims Services, to handle all claims on the programme following pre-agreed procedures.

The entire claims process is handled electronically, with underwriter, broker and adjuster able to access a common system at any time. This avoids duplication and saves some 4-5 days over the traditional serial method of claims advice. New claims can be reviewed within 24 hours, a full report with recommendations prepared within 10 days and settlement achieved in 12-14 working days. Amlin lodges funds with Southern States so that adjusted claims can be paid locally and quickly, thereby saving around 5-7 days in transfer time. Finally, the policyholder can track the status of the claim via a dedicated website. The programme is flexible and the Amlin underwriting and claims teams are required to research new vehicle types and make frequent adjustments for new units and new insureds. Both EPG and Southern States Claims Services play an active role in industry risk management including operator and safety training, and theft prevention, to the benefit of all programme participants.

John Shepherd, Chief Executive of EPG Insurance Services Limited explained: “Insurance of heavy equipment which is in continual use in some hostile and inaccessible regions has traditionally proved a volatile market. In Amlin, the programme has a specialist risk carrier with the skill, strength and portfolio diversity to manage this volatility, coupled with a real understanding of the industry.”

T. Gillis Morgan III, President of Tidewater, the world’s largest Tigercat dealer, comments: “EPG’s physical damage insurance program has been very beneficial to both Tidewater and its customers. It meets a definite need for our customers and the claims processing has been very smooth. When downtime costs our customers money, EPG and Amlin’s commitment and speed of response to claims has made this a service second to none.”