These contracts are sometimes referred to as “Programs” they differ from individual risk placements in that the contract allows a variety of risks at predetermined rates and capacities. It is usually on Niche business or class specific and on a risks attaching basis sometimes for risk classes excluded by the insurers treaties. Unlike Facultative Insurers can quote and bind risks without referral to reinsurers, they can also close the business on monthly or quarterly premium and claims bordereaux thus eliminating the frequency of transactions.
There are strict underwriting rules written into the contract so as to control the type of risk which can be quoted and bound. Dependent upon the class of business this can be done by stipulating acceptable risk characteristics such as occupation, products, construction, vehicle type etc. It is also usual for the contract to carry a large list of exclusions and to nominate the insurer policy wording as the agreed acceptable wording. In the property class monitoring of Nat Cat aggregates are crucial and there are set protocols and periodic reviews required both claims and underwriting to maintain a healthy Program. Wickshire is very well versed in all classes and all Programs and can easily facilitate this style of placement along with the ongoing management.