Importance of a Balanced Portfolio

October 25, 2019

The last 18 months has been challenging particularly for risks that are complex, large, and/or professions that had been known as loss leaders.

Why is this so?

  • several Lloyd’s supported MGAs and local insurers ceased providing capacity and/or restricted its appetite to these market segments
  • lack of profitability of the PI portfolio particularly the professions considered as loss leaders

No MGAs or their insurers can have a portfolio of these type of risks and be sustainable.

As your partner, we promised a more holistic approach in underwriting and thereby took some share of these difficult-to-place risks. However, it is clear to us that we can only do so much and have been substantially increasing our decline rate from this segment.

What we are:

  • SME MGA with broad based underwriting appetite for professional risks and general liability
  • a niche player
  • specialists in construction professionals and financial advisors for where we have written substantial part of your portfolio – these are not an easy write, but we do so subject to our strict underwriting considerations that we have built from many years of experience in underwriting these professions.

What we are not:

  • hard to place MGA

Irrespective of our specialisation, we need to have a sustainable portfolio that we and our insurers prefer, and for this we need a balanced portfolio. In the past year and half this is one of our key predicaments.

Why a balanced portfolio?

  • so that we can continue to support you in writing your portfolio including some difficult risks.

What risks are we asking you to place with us to balance the portfolio?

  • Miscellaneous PI – SME, large to corporate risks
  • Small building professionals – architects and engineers
  • IT risks – SME to large risks
  • General liability- SME to mid-size risks
  • Medical malpractice cover for professionals and establishments (not hospitals)
  • PI and or GL schemes

Our appetite for SME is strongly supported by our efficient online portal which should make it easy for you to transfer risks and the renewal process is more efficient again.

Should you have any questions, please talk to your Pacific Indemnity underwriter or give me ring at 0401712017.


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