We were recently in contact with an energy multinational, which wanted to optimise its fronting arrangements. This gave us the opportunity to support the company in operating effectively through its captive insurer backed by our financial strength.
It was an involved process to design the right solution for this client as the usual regulatory, tax and compliance issues were multiplied by the number of countries in which the company is present. In addition, we had to work closely with the captive to analyse such factors as risk mitigation measures and exposure levels (particularly for high-impact risks).
Ultimately, it was this preparation that made our offer stand out. We closed a deal for a one-year fronting arrangement with customised cover for property, business interruption and third-party liability risks across several countries. As a result, the client was able to benefit from an integrated, multi-line package, thus reducing the complexity of its insurance portfolio. In addition, we adapted our fronting capacity to suit the client’s specific risk exposure, which gave them a better deal than an off-the-shelf solution.
Fronting is quite a common practice in insurance. It allows companies to retain their own risks, while at the same time meeting their regulatory requirements and clients’ demands through the backing of an external partner.
At Swiss Re Corporate Solutions, we apply our industry expertise and strong financial base to allow our clients to enjoy our support in the most efficient way we can provide it. We do that by ensuring our clients can maximise the cost-to-benefit ratio of their insurance captive, in addition to fronting for the large claims.
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