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Spring 2014 Bermuda Re/insurance+ILS 7

D&O – Allied World

Darren Powell Allied World

Allied World’s D&O portfolio reflects that of the wider syndicate,

one with a determinedly emerging markets focus. As Powell outlined, while in the past emerging markets were buying very low limits of D&O coverage, their appetite has grown substantially in recent years. And exposures aren’t only limited to local markets, he said. As regional industrial clients grow increasingly global they are placing exposures beyond their home territories. “Local insurers struggle to deal with jurisdictional issues across multiple territories, and as such we are seeing larger D&O limits and exposures being placed at Lloyd’s from emerging jurisdictions”.

Powell said that Allied World tends to issue policies through its

Lloyd’s license, working closely with local cedants. “The local cedant may be placing an excess at Lloyd’s, but we still like to meet the local client and act much like a direct carrier. In this way we tend to get a better response.

Commenting on the changing face of D&O buying behaviour, Powell

said that while many in the market are taking advantage of historic distribution channels, gone are the days when you could simply wait for business to come to London. Instead there is increasing emphasis on the market’s global hubs and license network.

Powell said that the company’s FlexField suite of D&O products had

been well-received in AsiaPacific. “FlexField is a set of products designed to move away from offering an ‘insurance policy’ which can quickly become commoditised, to provision of a ‘coverage service’ by providing choice and opportunities for customisation.’ Powell added: ‘The four base policy structures are adjustable depending on the requirements of our insureds and each contains features designed to address gaps in

“We are seeing larger D&O limits and exposures being placed at Lloyd’s from emerging jurisdictions”

what the market offers. For example, we observed that underwriters were actively reducing the sub-limit offered for investigations and inquiries cover under primary D&O policies. In response, we created a solution which allows us from an excess of loss attachment, to provide additional capacity across any cover which is sub-limited on a primary policy, including investigations and inquiries. In doing this we address a need, add value to the broader market and differentiate our offerings.”

He said that the company’s local approach, which involves working

closely with brokers on the ground, had enabled Allied World to deliver products that are a strong fit with client needs. “We invest significant resources in making sure our products are relevant to the local market, and pride ourselves on our quick response time and technical capabilities”.

Powell said that due to the technical capabilities of Allied World’s

D&O team he is confident putting them in front of the CFOs and CEOs of cedants and end buyers knowing that they will be “well- received, can ask intelligent questions and will provide comprehensive explanations of what exactly their products deliver. The brokers tend to like that”, he said, “and they appreciate an underwriter who is credible and can support them in what they are trying to do.” It helps being able to draw on significant London expertise.


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