At times, it may be beneficial for us to work with another credit insurer In order for you to receive the best possible coverage levels. It is very much in the tradition of Lloyd’s for insurers to cooperate to give the best outcome for the client. This technique has been successful in practice for hundreds of years. In the past, some credit insurers have resisted this approach, but at Equinox Global we embrace it and there are several ways it can be done.
Each credit insurer will typically take a fixed percentage of each credit limit. For example, three credit insurers may each take a 33.33% share of every credit limit. Alternatively, if the policy includes a very large number of smaller credit limits, the credit insurers may agree to syndicate only the bigger credit limits (say the top ten), and one of them will take all of the smaller credit limits one hundred percent. In a syndication the insurers share a common wording and price. At Equinox Global we are familiar with wordings of the main credit insurers, and are usually able to adopt one of these. Alternatively, the broker may draft a common wording of his own; these policies operate seamlessly for the client.
The primary insurer writes as much as he feels able on each credit limit and any shortfalls are taken up by the top up insurer. The insured must notify the top up insurer of any changes to the cover made by the primary insurer. Equinox Global is happy to assume the role of either the top up insurer or the primary insurer.
For you as the customer, having more than one insurer will usually improve service quality and response times, as each insurer is kept ‘on its toes’ by the presence of competition in the relationship. Difficult credit limit decisions tend to be handled more sensitively, because each insurer will want to be seen to be acting reasonably. The same applies to claims, where you also have the benefit that no single insurer is bearing too much pain.