Neon, an insurer operating in the specialist Lloyd’s market, has said that it will lead the newly established London political risks insurance consortium, with MS Amlin becoming a joint agreement party.
Image: Neon launches political risks insurance. Photo: Courtesy of Neon Service Company (U.K.).
Neon said that the consortium will be headed by its recently promoted head of specialty, Nicholas Robinson.
The new initiative has been created to mitigate the increased levels of political uncertainty across the world that have triggered demand for political risks insurance coverage at scale.
The consortium aims to offer insurance coverage to corporate investors and financial institutions for assets which can be located anywhere in the world, including emerging markets.
The new insurance will enable syndicates to compete more easily for bigger risks that demand larger capacity at attractive rates, where brokers are able to access underwriting expertise in single meeting.
$100m limit per policy has been put and the market is made up of 100% of Lloyd’s capacity. The consortium claims to show the real strength of Lloyd’s market being able to tackle large and complex risks, addressing a growing market for the need to bring out new collaboration that leverages the expertise of the two companies.
The maximum period for a policy is seven years and it provides coverage to clients for risks including confiscation, expropriation, nationalisation, deprivation and political violence & war, the company said.
Robinson said: “Political Risks insurance has long been a strength for Lloyd’s and Neon’s team has more than half a century of combined experience in this specialist field. This includes the expertise to consider confiscation of business for assets owned through shareholding. The consortium can also support the growing group of financial institutions looking to lend into emerging markets and which therefore require country risk coverage.
“The consortium will provide the necessary scale and breadth of coverage for both London-based and global clients at a time where there is growing demand for the product, following various loss events in South America, Eastern Europe, North Africa and Asia.”