Kevin Allchorne Leading Class Underwriter

Innovation brings rewards for our clients
Mountain States Insurance Group provides property and casualty insurance products and services to business owners through an expanding network of professional independent agents in Colorado, New Mexico, Texas and Utah. The company approached Amlin, through Lloyd’s broker Towers Perrin Claytons, in search of an innovative solution to a problem which was making it difficult for them to compete in the property insurance market. The company had repeatedly to approach and solicit the facultative property reinsurance market for coverage limits that exceeded the amounts covered by property treaties. This affected around 50% of the business they were attempting to write and, due to the particular nature of the facultative property reinsurance market, these approaches were time-consuming, frustrating and often unsuccessful.

In 2007 Amlin structured a risk excess programme, tailored specifically for Mountain States' portfolio, which allows the company to cede business as required on a "pay as you go" basis with preset rates for property and inland marine business. This enables Mountain States to provide certainty of cover in support of their agents and insureds.

Glen A. Walters, Vice President of Mountain States Insurance Group explained: "since Amlin devised this program, the company has been able to increase property premiums by 74.2%. In addition, 98% of the property risks now fall within the coverage limits of the property treaties and the Coded Property and Inland Marine Per Risk Excess of Loss Reinsurance Program, reducing the need for us to use the facultative property reinsurance market to 2% of risks submitted. Other benefits of the new approach have been a substantial growth in the hit ratio, growth and profitability of the property book, together with decreased administrative expenses."