Overview: US Individual Risk Philosophy
Our approach to building a portfolio and underwriting the risk has been developed over the last 10 years and is seen as a constant process of improvement.
We view the different sectors of risk as permanently under review and underwriting as an opportunity to learn and improve. The market does not stand still so nor should our approach to taking risk. We encourage the team to develop and evolve and will always look to introduce new ways of delivering so we continue out performing our market peers through all stages of the market cycle.
Outstanding results have been achieved by constructing a balanced portfolio that is driven by 4 key elements with every risk being considered not only for its individual merits but also for how it will affect the overall performance of the book.
Key Elements in the portfolio:
1. Diversify the Product: a defined approach within property by sector
2. Manage Attrition: consistently deliver an attrition loss ratio of sub 15%
3. Supply Chain Management: deliver a portfolio acquisition cost of sub 15%
4. Manage Aggregates: employ real time, strategic aggregate management
Risks with a TIV of between $200m and $2 billion are defined as Middle Market. Through discussions with the Bermuda based brokers and their US retail colleagues we are developing a product that targets this business via the global broker community based in Bermuda.
- There are a number of advantages to Helix trading directly with global brokers based in Bermuda:
- Access to nationwide networks with the Bermuda office acting as a hub for placements allows for a balanced portfolio of risk to be written from multiple regional offices avoiding over exposure in any one zone
- With non-consensus pricing on every deal having clear communication with the retail broker is key to avoid being at the bottom of the pricing scale
To assist in the development we designed an E&S market product called MM100F to deploy 100% of limit shares on excess of loss layers targeting soft occupancy business.
- Advantages to the 100% approach:
- $25m capacity deployed as 100% of layer limit allows underwriters to set the optimal attachment point to ensure minimal potential for attritional losses
- Every account is written on an Excess of Loss or Excess Difference in Conditions basis – no primary business