Willis Re has rolled out a new syndicated reinsurance facility that gives broad protection for insurers against catastrophic and systemic loss accumulations stemming from liability portfolios.
The new product, dubbed PRIMO, is initially supported by 20 of the world’s leading reinsurers, according to the company. It is designed to address concerns around accumulation and systemic risk as insurers keep on more liability exposure.
As well, PRIMO responds across all casualty and professional lines, providing more than $400 million in reinsurance capacity worldwide based on pre-agreed contract wording.
Simon Bird, head of casualty treaty at BRIT Syndicate 2987, said in prepared remarks that PRIMO “demonstrates the ability of the reinsurance market to offer both significant capacity in terms of quantum and a structure designed to give broad coverage.”
“As such,” Bird added, “it delivers a meaningful tool whereby casualty aggregations, both known and unknown, can be more effectively managed.”
Additionally, PRIMO streamlines the process of building reinsurance to address complex tail exposure, and, through syndication, provides depth to the market, enabling competitive pricing and cross-cycle resilience.
“While the first-party risks from earthquake, wind, flood and other manmade perils are well served by property catastrophe reinsurance markets, until today, third-party casualty risks have been considerably less well served, Andrew Newman, head of global casualty at Willis Re, said in prepared remarks. “Now, for the first time, meaningful catastrophic reinsurance protection is available, and affordable, for writers of casualty business, including all financial and injury-based lines.”
Source: Willis Re