Case study #3: NatCat-exposed manufacturer with property policy renewal challenges
A manufacturer in Thailand was facing property policy renewal challenges due to their plants having high flooding and fire risk exposures, with one impacted by a fire a few years ago. Both the local and international insurance markets had limited appetite for these risks, and any capacity that was available came with a high premium, hence they turned to Marsh.
Five months prior to the policy renewal, Marsh Asia’s placement team organised workshops to provide the client with an overview of the market conditions and to collectively agree on a renewal strategy, which included a focus on risk management to strategically showcase the client’s investments and measures to improve their risk profile.
Concurrently, our placement team also met with reinsurers to better understand their renewal requirements. Due to the previous loss event, our placement brokers understood the necessity of demonstrating a proactive risk management approach and communicate tangible improvements to the insurer; Marsh Asia’s risk engineers helped in conducting surveys and gathering critical details to satisfy those underwriting requirements.
Ultimately, our placement experts helped restructure the insurance program with a blend of more cost-effective quota share capacity alongside non-proportional capacity, enabling a 15% premium discount* compared to their previous program.