The global insurance group Willis Group has signed up threepartners to a scheme that automatically allocates them a slice ofbusiness written in speciality areas such as energy oraviation.
|London-based insurer Hiscox, People's Insurance Company of China(PICC) and Warren Buffett's Berkshire Hathaway are the firstparticipants in the “Global 360″ scheme, Willis said on Wednesday,adding that it was in discussions with other potential members.
|Complex policies are usually signed in London's insurance marketaccording to terms set by a lead underwriter who takes on thelargest single proportion of the risk while the remainder isdivided between other insurers willing to come in on the deal.
|The new scheme functions by automatically allocating the 'bottom20 percent' of any risk to the insurers who have signed up, addinginsurance capacity to areas that can be difficult to insure.
|“By providing a door though which additional capital can accessportfolios of risk, our clients will benefit from increased pricecompetition and faster placements and claims agreement,” said SteveHearn, Willis's deputy chief executive.
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