Proactivity and service are the pillars of specialty insurance

Lynn O’Leary of RSA Luxembourg talks about the specialty insurer’s ambitious targets for 2024/25 and the development of Europe’s specialty insurance market.

Lynn O’Leary was appointed as CEO of RSA Luxembourg in 2022 to oversee Intact’s specialty business on the continent. Since then, the European business has been fully integrated into Intact’s Specialty Lines business and is set to play a key role in its ambitious growth strategy. The plan is to grow to CAD$10bn in direct written premiums by 2030 at a sustained, sub-90s combined ratio.

As O’Leary explains: “In Europe, RSA is a specialty insurer. Specialty is more focused around niche coverage and bespoke insurance programmes based on the client’s business sector and specific insurance needs.”

“Whereas commercial insurance may be based around a range of products, specialty insurance is more about a portfolio of services – from risk consulting and risk engineers to claims handling and specialist underwriting,” she adds.

Global specialty insurer

The Intact integration has given RSA the backing of an international insurer with a global footprint. It provides services in 150 countries and territories through the RSA/Intact Global Network. This network is complemented by a well-established claims and actuarial service in the North American business, which has significantly grown over the last five years. Having this global backing, reach and shared expertise enables RSA to set itself apart from other European insurers, argues O’Leary.

And while RSA is looking to replicate the success of its North American speciality business, O’Leary recognises that it is not a case of ‘lift and shift’ and there are some key differences within the European market. “There are different products and services in different geographies, so it is not a case of one-size-fits-all and involves using local expertise,” she says.

“We want to capitalise on the opportunities in Europe by leveraging the outstanding specialty lines expertise and existing distribution relationships we have locally.”

One of RSA’s new initiatives in Europe is the launch of its technology and management liability coverages. The technology service is a one-stop solution offering property, liability, professional indemnity and cyber coverage to technology companies.

Technology specialist

“The technology sector in Europe is very complex and dynamic, with rapidly developing fields like AI and robotics, which presents a great opportunity to offer a level of protection to these startups and innovators,” says O’Leary.

Such companies are primarily focused on innovation and do not typically look at insurance, concedes O’Leary. “They will understand they need it. They just may not be aware of the value of a programme where the insurer is involved early in the process and can provide risk engineering advice and financing services.”

Management liability protection is the other area that RSA is looking to address with a new product launch. The product offering provides D&O liability insurance to businesses in Belgium, France and the Netherlands, with Spain to follow in early 2025. Other coverage, such as employment practices liability, fiduciary liability and crime protection will also be offered in a staggered approach.

“The global operating environment for customers is rapidly developing and there is much greater responsibility on senior executives, which has created increased interest in management liability insurance protection,” says O’Leary. “Providing D&O coverage helps a company attract strong candidates for the board and gives them the freedom they need to focus on running the company.

“As RSA is a financially stable and well-known insurance partner for most brokers and customers, RSA’s management liability offering is well positioned to provide companies in a wide variety of products that can be tailored and localised to suit a customer’s specific insurance requirements,” says O’Leary”

The Ferma Forum will give RSA the opportunity to promote specific products and explain the benefits of a specialty insurance programme. “The conference is a great opportunity to raise awareness about the benefits of specialty insurance in identifying risk controls and implementing those controls,” says O’Leary.

“By the time companies become aware of the risks, it’s often too late. Specialty insurance is different. It’s proactive, not reactive,” she adds. “Let us partner with you to develop a plan that includes risk consulting and prevention as part of your overall risk assessment.”