WeSpecialty launches comprehensive political risk and terror solution as market tightens

WeSpecialty, the fast-growing Paris-based specialty managing general agency backed by a number of leading Lloyd’s insurers offering capacity to French and global corporate insurance buyers, has launched an innovative solution to cover political violence, terrorism and political risks.

Patrick de la Morinerie – founder and chairman of WeSpecialty, former deputy CEO of AXA Corporate Solutions and chairman of the International Union of Marine Insurance (IUMI) – told Commercial Risk Europe that the new solution, called Canopy, responds to customer needs by bringing together the whole range of risks in one product.

Tragic terrorist events in London this week have once again underlined how this risk will not simply go away and cannot be contained in hot spots such as Syria or Afghanistan. Political and terror risks are driving the global political and economic agenda currently and not surprisingly some of the traditional war-risk insurance players are pulling capacity.

Specialty insurers such as WeSpecialty, backed by the London-based investment firm Aquila Underwriting that nurtures such MGAs, have the expert knowledge and flexibility needed to potentially plug the gap for corporate insurance managers.

Mr de la Morinerie explained that Canopy combines the full range of political violence, terrorism and political risk covers in a simple, comprehensive and modular product. Such covers are normally available in separate products across London and continental European insurance markets.

Mr de la Morinerie said that Canopy is aimed at manufacturers and commodity traders, as well as any international company operating in sensitive areas. When it comes to political risk it aims to cover confiscation, nationalisation, expropriation and deprivation.

WeSpecialty can issue political risk cover up to €25m, increasing to €125m for political violence/terrorism. “These amounts can be supplemented by means of co-insurance. Canopy is a product developed in partnership with Hiscox, a benchmark player in the world specialty market. Other major insurers are expected to strengthen this partnership in the months to come,” said Mr de la Morinerie.

Other Lloyd’s capacity providers for WeSpecialty include Aegis, The Standard, ArgoGlobal and CNA Insurance.

Mr de la Morinerie said: “WeSpecialty, which desires to take a fresh look at complex risks, offers Canopy as a total response to the growing needs of businesses operating in certain unstable regions or in low-security environments.”