1 Rampq crs RampQ COMMERCIAL RISK SERVICES LTD BIBA Commercial Facility Including Flood Learning objectives RampQ CRS LTD Who we are Overview of the BIBA Scheme Review of the products available and the policy benefits that ID: 767019
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1 R&q crs R&Q COMMERCIAL RISK SERVICES LTD BIBA Commercial Facility Including Flood
Learning objectives R&Q CRS LTD – Who we are Overview of the BIBA Scheme Review of the products available and the policy benefits that applyFlood …The Market PlaceOur SolutionHow we model and charge for the flood risk – Case StudyOne Year In – Performance of the SchemeGetting going with us, contact points, TOBA and housekeeping etc 2 R&Q CRS
R&Q Crs - Introduction R&Q CRS Ltd is a subsidiary of the R&Q group of companies. We are an established and fast growing MGA that caters for UK Commercial Business via Independent Insurance Brokers throughout the country . We differentiate ourselves through exclusive quotations, superior policy wordings and experienced and knowledgeable staff in our four offices, London, Manchester, Birmingham & Bournemouth . 2017 was an excellent year for our business where we say growth of 17% achieved by:The launch of the BIBA Scheme which includes the provision for difficult flood exposures.The opening of our latest office in the South Coast.Continued development and success of the www.mi-binder.com platformWe will continue to invest in new technology and most importantly good people to grow our businesses together. 3R&Q CRS
R&Q CRS LTD – key FACTS Opened for Business in September 2010 Team of 19 Insurance Professionals Offices in the City, Manchester, Birmingham & BournemouthLLOYD’S Coverholder and Member of the MGAASubsidiary of RQIH Plc. Underlying strategy that aligns Niche A rated capacity with our fiercely independent broker base4R&Q CRS
R&Q CRS LTD - Core principles Support the Independent IntermediaryWe are not a broker and don’t own any brokers Exclusive Quotations Experienced Underwriting Team that makes decisionsNiche ‘A’ Rated Composite or Lloyd’s Capacity Best of Breed Policy wordings with extensions in cover that offer genuine value Fair and consistent commission structure 5R&Q CRS
BIBA COMMERCIAL PROPOSITION INCLUDING FLOOD - Introduction Appointed the as the MGA for the BIBA Commercial proposition including the underwriting of difficult commercial flood business in December 2016. BIBA asked us to put together a suite of products for their membership to cater for their SME and property investor clients but also to cater for risks that are classed as difficult flood exposures. This could range from risks that have previously flooded or risks that are located in high or perceived high risk flood areas, where obtaining cover from the market has not been possible. The scheme has three specific contracts: Commercial Combined for manufacturing and distribution trades. Package for Retail, Offices & Surgery Property Owners cover for real estate investorsSummary of Cover and Policy Wordings can be downloaded from:http://www.rqcrs.com/biba-scheme/ R&Q CRS LTD6
FLOOD AND THE UK INSURANCE MARKET Approximately 300,000 business across the country are at risk of flooding. Now thought that flood is to most likely cause of damage to property. ABI withdrew from the statement of principles to maintain flood cover in 2013 . The market is disjointed and inconsistent. Huge investment in flood modelling systems by Insurers.Reinsurance treaties are being bought on the proviso that flood is not underwritten in high risk areas.Ultimate result is more and more Businesses are going without cover and nobody is prepared to underwrite the exposure.R&Q CRS LTD7
FLOOD AND THE UK INSURANCE MARKET Footer Presentation title 8 National issue Potential to affect lives, communities & infrastructure on mass Delays in funding due to austerity IPT increase to compensate for increased flood threats? Political factors – BrexitImprovements implemented?
BIBA COMMERCIAL PROPOSITION INCLUDING FLOOD All business is underwritten by one of teams in either our London, Manchester, Birmingham & Bournemouth offices. The scheme is not “flood re” and not based on a levy. Quotations will be offered on all covers not just flood. Policyholders benefit from our superior policy wordings that include Cyber (including Crime) as standard, D&O, Embedded breakdown and many other cover extensions that offer genuine value. For trades that fall outside of our underwriting remit we will consider offering “flood only terms ”. Using a propriety flood model supplied by Landmark it enables us to locate and model the exact location of a risk rather than a usual 200m radius.R&Q CRS LTD9
Flood Modelling – Case Study Flooring Contractors Established 1985Members of ‘ Constructionline ’ & the ‘Contract Flooring Association’ (CFA) ‘Well run & clean risk’Security – CCTV, Fire & Intruder Alarm (NACOSS Maintained)Large industrial Estate situated in in a valley - opposite a raised residential roadExtreme risk of flood from River Aire denoted on the flood model – within 25mLarge Flood Claim on 26/12/15 - £141,328 R&Q CRS LTD10
FLOOD MODELLING – CASE STUDY Identify site
Flood Modelling – Case Study Identify site
Flood Modelling – Case Study Identify site
Loss value FLOOD MODELLING – CASE STUDY Metric Value JBA Damage Ratio Very High 98-99% RMS Damage Ratio Extreme >99%EA Return PeriodRP100 JBA Return Period (Pluvial) None JBA Return Period Fluvial (Undefended) RP75 JBA Return Period (Coastal – Undefended) None RMS Return Period (Pluvial) RP75 RMS Return Period (River – Undefended) None RMS Return Period (River – Defended) None ESI Groundwater Moderate Flood Warning Count (Severity 1): 0 Flood Warning Count (Severity 2): 4 Flood Alert Count (Severity 3): 22 Flood Warning Year Count (Severity 1): 0 Flood Warning Year Count (Severity 2): 2 Flood Warning Year Count (Severity 3): 6 Last Flood Warning (Severity 1): N/A Last Flood Warning (Severity 2): 25/12/2015 Last Flood Alert (Severity 3): 22/11/2016 EA Historic Events: 2 JBA Canal False JBA Dam Burst True SEPA Rivers 100y Depth None Steadman House, Shipley Usage: Commercial – Flooring Contractors Buildings SI: N/A Contents SI: £300,000 Bus Int. SI: £150,000 Min Floor: 1 Claims: Flood Claim 26/12/2015 – £141,328
FLOOD MODELLING DETAIL Rather than the usual one set of flood metric’s our model provides us with many to fully analyse the potential flood exposure of a property: Surface water floodingCoastal & river flooding Groundwater FloodingSewer FloodingReturn Periods calculated alongside Estimated annual gross loss . The R&Q Underwriter is also provided with details with historic events. Utilising all of the above it provides us with the basis of being able to provide terms. R&Q CRS LTD15
Underwriting considerations (flood) Previous Flooding? Construction of the premisesPreventative action taken by you or local government Flood resilience and resistance measures takenHas access to the occupied premises ever been restricted by flooding?Do you have a disaster recovery plan? Business Continuity Plan? Type of risk, stock susceptible to water damage? Electrics / Switch gear – are they above ground level Does the client have a basement? Specialist machinery, high value machineryLead in time in time for replacement of equipment & stockStillage R&Q CRS LTD16
COVER OPTIONS WE WILL CONSIDER R&Q CRS LTD 17 We appreciate that pricing can be an issue on a full value basis, to assist we can consider various cover options: First LossLarge deductible with excess buyback available Loss limitAggregate limit for the period
BIBA COMMERCIAL PROPOSITION INCLUDING FLOOD The scheme benefits from security supplied by Lloyd’s of London (A Rated). Our underwriters will attempt to find a viable solution for you and your client and will take into account any flood resistance and resilience measures that the insured has put in place .Our risk management team can also advise and assist with flood risk improvements. Whilst every effort will be made, we are not obliged to offer terms, as a new scheme to market we will appreciate every BIBA members feedback to shape the scheme so it is profitable and sustainable for everyone. R&Q CRS LTD 18
BIBA COMMERCIAL PROPOSITION – contact details R&Q CRS LTD 19