Aon offers cover against insurer insolvency
A nervous marketplace has prompted Aon Risk Services to launch a corporate product protecting against insurer insolvency.
Double A Protect is designed to stabilise insurance portfolios in the event that a current, or historic, insurer becomes insolvent.
It was developed on a global basis in a partnership with Allianz Global Corporate & Specialty. In Australia the product is underwritten by Allianz Australia.
Double A Protect delivers excess capacity of up to $40 million in backup insurance and covers general and product liability and D&O insurance policies, including up to five years of retroactive cover for general liability.
Aon’s National GM Corporate Risk Services, Paul Venning, says the product provides continuity.
“We’ve been proactive in creating a solution that, in the event that the client would have an insolvent insurer, would help to provide an immediate solution,” he told insuranceNEWS.com.au.
“The alternative is not to have any coverage in standby and then have to try and find it at a time when buyers would all be looking to replace an insolvent insurer.”
He says Aon clients have been voicing concern about their insurance portfolio’s stability and performance in the wake of market turbulence, particularly in the financial services sector.
“At this stage we have a number of clients who are completing the applications,” Mr Venning said. “There are seven or eight major listed Australian companies. We expect we’ll get a reasonably broad cross-section of our client base interested in it.”
Double A Protect is designed to stabilise insurance portfolios in the event that a current, or historic, insurer becomes insolvent.
It was developed on a global basis in a partnership with Allianz Global Corporate & Specialty. In Australia the product is underwritten by Allianz Australia.
Double A Protect delivers excess capacity of up to $40 million in backup insurance and covers general and product liability and D&O insurance policies, including up to five years of retroactive cover for general liability.
Aon’s National GM Corporate Risk Services, Paul Venning, says the product provides continuity.
“We’ve been proactive in creating a solution that, in the event that the client would have an insolvent insurer, would help to provide an immediate solution,” he told insuranceNEWS.com.au.
“The alternative is not to have any coverage in standby and then have to try and find it at a time when buyers would all be looking to replace an insolvent insurer.”
He says Aon clients have been voicing concern about their insurance portfolio’s stability and performance in the wake of market turbulence, particularly in the financial services sector.
“At this stage we have a number of clients who are completing the applications,” Mr Venning said. “There are seven or eight major listed Australian companies. We expect we’ll get a reasonably broad cross-section of our client base interested in it.”