Sovereign Insurance Australia aims to shake up the Australian market as it broadens its appetite in an effort to solve a range of insurance challenges through innovation.

Sovereign Insurance – a fully licensed APRA insurer – has been around for almost a decade as a Perth-based specialist in motor add-on products.

But last year, it was acquired by family-owned underwriting agency AWN Insurance, and the combination of the two businesses has opened up new possibilities – and a national appetite.

Sovereign CEO and AWN MD Damian Chadwick tells Insurance News that Sovereign Insurance will no longer be restricted to its traditional product suite, and nothing is off the table.

AWN, formed in 1992 and traditionally a motor add-on specialist, is backed by Lloyd’s capacity and has grown to include operations across Australia and overseas.

Mr Chadwick believes fusing AWN’s expertise with the vision and reach of Sovereign Insurance points to an exciting future.

“We have developed sophisticated systems and processes to meet the unique requirements of the Australian market. These digital solutions enable Sovereign Insurance to bring some exciting products and services to market,” he says.

“Our appetite is far broader than just automotive, and we have placed no limitations on the possible applications of our new technology.”

He says AWN’s 30 years as an underwriting agency provides Sovereign Insurance with a unique understanding of the market’s requirements and a firm foundation on which to tailor its approach.

“The transition from insurance agent to insurance company is not common. It gives us an interesting view of the marketplace and a great understanding of the challenges MGAs and brokers face. Better than most, we relate to the concerns of the Australian insurance market.

“Having long complained about the lack of innovation in the insurance market and the absence of appetite to explore emerging markets, I now find myself in a position to champion a change in the narrative. 

“I am not saying we can get every deal across the line; however, my team is committed to using sound underwriting principles in line with the available new technology to better understand a presented opportunity.” 

Mr Chadwick says Sovereign Insurance will accommodate direct and broker-intermediated opportunities with a particular interest in insurtech innovation.

He says it has no interest in taking market share from others. Instead, it has focused on creating new markets and collaborating to bring new and exciting products to life.

“We are the product incubator brokers and MGAs have been waiting for. An insurer with the experience, resources, and motivation to address non-traditional challenges brought about by advancements in modern living.”

Mr Chadwick says Sovereign Insurance will assist traditional capacity providers as a conduit to the highly regulated Australian market. 

“Australia has some of the highest standards in the world regarding compliance and consumer protection. While this is of great benefit to consumers, it can act as a deterrent to quality insurers seeking to do business here. Sovereign Insurance is ideally positioned to assist London markets in navigating the associated conduct risk attached to Australian programs.” 

With more than a decade’s experience as a coverholder/MGA, we are the ideal partner to accommodate sophisticated models such as insurance treaties, quota-shares and captives, alongside licensed claims handling.

Mr Chadwick wants to hear from various industry participants interested in working with Sovereign Insurance.

That could include syndicates looking to streamline Australian operations, brokers or agencies who have found it difficult to find capacity for certain insurance classes, and those looking for assistance with an innovative insurance solution. 

“We are a specialty insurer with an appetite for non-traditional risks. 

“Understandably, many insurers have lost their appetite to explore opportunities outside of the norm. However, we feel that exploration in emerging markets is a necessity.

“Airbnb, ride-sharing and drones are all examples of new risks that reflect modern lifestyle changes. As technology advances, so will risk profiles, and Sovereign Insurance is passionate about supporting MGAs and brokers through this transition.

“I believe collaboration will be a staple in our success, and we have a lot to bring to the table. With AWN and Sovereign Insurance providing guidance and oversight of compliance and conduct risk, we are providing a much-needed platform for innovators and startups.”

To discuss opportunities with Sovereign Insurance, please contact enquiries@sovereigninsurance.com.au, or call 1800 240 125.