Going above and beyond – Tailored solutions that boost your risk management strategy

Background

Headquartered in Australia, the customer is in the mining industry with operations in several locations globally. With ambitious business targets, the company was consolidating their mining assets and looking to optimize and extend the lifespan of their existing assets. At the same time, they were also discovering and acquiring new mineral reserves.

Existing arrangement

Swiss Re is a co-reinsurer of the customer's mines arranged through a Singapore-based wholesale broker. Additionally, while the mines are underwritten from EMEA and Australia, the retail broking appointment is held by the broker's Perth operations.

Opportunity

The customer wanted to reduce their insurance costs by implementing risk management procedures. As they were looking to absorb the risk exposures themselves, the customer had undertaken an independent Captive study to improve their Risk Management Strategy.

Following this study, the customer had approached us as they were looking to set up a Captive arrangement. As part of their request, they had asked for a bespoke, innovative solution that would help them mitigate their risk exposure.

The collaboration

Focused on delivering value to the customer, our Swiss Re Corporate Solutions team collaborated by bringing the best of our expertise and capabilities together. A key focus of the team was to develop a solution that would meet the customer's needs. 

Beyond focusing on only the customer's request related to setting up a Captive, our holistic, tailored solution offered an end-to-end approach for the customer. This included:

Outcome

The customer was satisfied with the bespoke, holistic solution we had proposed which met their needs of improving their Risk Management Strategy. In addition, the efficient coordination of this International Program project enabled all the customer's mines to be underwritten out of Australia. This helped the customer achieve the transparency of their commercial insurance policies and hence manage these policies more effectively.

While the customer's Fronting arrangements was organized through our networking partners in EMEA with fronting limits exceeding USD500 million, a Captive was set up for the customer with a "parental guarantee". This gave the Captive added financial strength with the customer, i.e., the parent company, guaranteeing the liabilities of its subsidiaries. In addition, a reinsurance panel was set up above the Captive retention to support the customer's additional risk exposures and limits needs up to USD15 million.

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Case study Going above and beyond

​Driving agility and efficiency in International Programs

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