What's New in Environmental Insurance? Everything
What events have caused the most commotion in the environmental insurance marketplace?
Most of the changes we have witnessed can be connected to AIG. As one of the largest environmental insurers in the nation, AIG's much-publicized fall from grace has started a chain reaction that has redefined the major players in the market.
Many of AIG's customers are distancing themselves from the embattled firm and a number of competitors are ready to step in and garner their business. And as AIG continues to restructure, more defections are expected.
How will these smaller and lesser-known competitors prove their worth against a giant such as AIG?
They need to prove that while they may be "smaller" than AIG in terms of sheer asset, they make up for it in financial stability and growth.
A.M. Best, the primary insurance-rating and information agency, is the key to validating an insurer's financial strength and ultimately, its success in the industry. Any insurance provider that scores an A- or higher by A.M. Best is considered to be stable.
Companies such as Chubb Group, ACE and Zurich, possesses strong AM Best ratings, some even obtaining higher ratings than AIG. Whether risk managers or buyers are willing to trust these companies' financial stability and longevity largely depends on the A.M. Best ratings.
How will the recent entry of several new insurers, such as Ironshore, impact the market?
To understand the market impact, one needs to look at the "market capacity" the maximum amount of limit an insurer is willing to put on a per risk basis.
For example, a larger company such as ACE is willing to put up a maximum of $50 million in limits on any given risk, representing a very aggressive liability capacity. Smaller companies, such as Arch Insurance Group or Liberty will only provide up to $25 million.
Prior to new environmental insurers, such as Great American, entering the market, all insurers capped at $200 million. The cap has now increased by $50 million, expanding the overall capacity of the marketplace. This increase is very favorable to buyers, as it allows for brokers to market more aggressively and help their clients find the best coverage at the most competitive price.
Can we bank on these new insurers' environmental qualifications? What kind of expertise do they have?
Whether it's a new start-up company or an established company creating or expanding an environmental division, there is a need for specialized environmental underwriters who understand the intricacies of environmental policies. To find these specialists, many firms are turning to AIG.
A number of former executives from AIG Environmental since left to form a new insurance underwriting unit within Ironshore, a newer company with no current financial issues. As the flight of executives from AIG continues, many of these up-starts will look to leverage the opportunity to obtain top talent.
Have insurers been offering any new products in environmental insurance to entice clientele from other companies?
All insurers are offering the same products, the most standard being pollution legal liability. Even the newest environmental product is 10 years old. What has changed is the pricing and coverage, which has become more aggressive in light of increased competition.
How does the new growth in the environmental insurance market help brownfield development and awareness building for the industry?
Environmental insurance is a must for any brownfield development project. Before large and established insurers provided environmental coverage, opportunities to develop on environmentally at-risk land parcels were very limited. Now, with a larger capacity and competition fueling a buyer's market, brownfield developers have significantly more options for coverage.
Ed Morales
Senior Vice President, Environmental Risk Management
EnviroFinance Group (EFG)
http://www.envirofinancegroup.com
Article Source: http://EzineArticles.com/?expert=Ed_Morales
Most of the changes we have witnessed can be connected to AIG. As one of the largest environmental insurers in the nation, AIG's much-publicized fall from grace has started a chain reaction that has redefined the major players in the market.
Many of AIG's customers are distancing themselves from the embattled firm and a number of competitors are ready to step in and garner their business. And as AIG continues to restructure, more defections are expected.
How will these smaller and lesser-known competitors prove their worth against a giant such as AIG?
They need to prove that while they may be "smaller" than AIG in terms of sheer asset, they make up for it in financial stability and growth.
A.M. Best, the primary insurance-rating and information agency, is the key to validating an insurer's financial strength and ultimately, its success in the industry. Any insurance provider that scores an A- or higher by A.M. Best is considered to be stable.
Companies such as Chubb Group, ACE and Zurich, possesses strong AM Best ratings, some even obtaining higher ratings than AIG. Whether risk managers or buyers are willing to trust these companies' financial stability and longevity largely depends on the A.M. Best ratings.
How will the recent entry of several new insurers, such as Ironshore, impact the market?
To understand the market impact, one needs to look at the "market capacity" the maximum amount of limit an insurer is willing to put on a per risk basis.
For example, a larger company such as ACE is willing to put up a maximum of $50 million in limits on any given risk, representing a very aggressive liability capacity. Smaller companies, such as Arch Insurance Group or Liberty will only provide up to $25 million.
Prior to new environmental insurers, such as Great American, entering the market, all insurers capped at $200 million. The cap has now increased by $50 million, expanding the overall capacity of the marketplace. This increase is very favorable to buyers, as it allows for brokers to market more aggressively and help their clients find the best coverage at the most competitive price.
Can we bank on these new insurers' environmental qualifications? What kind of expertise do they have?
Whether it's a new start-up company or an established company creating or expanding an environmental division, there is a need for specialized environmental underwriters who understand the intricacies of environmental policies. To find these specialists, many firms are turning to AIG.
A number of former executives from AIG Environmental since left to form a new insurance underwriting unit within Ironshore, a newer company with no current financial issues. As the flight of executives from AIG continues, many of these up-starts will look to leverage the opportunity to obtain top talent.
Have insurers been offering any new products in environmental insurance to entice clientele from other companies?
All insurers are offering the same products, the most standard being pollution legal liability. Even the newest environmental product is 10 years old. What has changed is the pricing and coverage, which has become more aggressive in light of increased competition.
How does the new growth in the environmental insurance market help brownfield development and awareness building for the industry?
Environmental insurance is a must for any brownfield development project. Before large and established insurers provided environmental coverage, opportunities to develop on environmentally at-risk land parcels were very limited. Now, with a larger capacity and competition fueling a buyer's market, brownfield developers have significantly more options for coverage.
Ed Morales
Senior Vice President, Environmental Risk Management
EnviroFinance Group (EFG)
http://www.envirofinancegroup.com
Article Source: http://EzineArticles.com/?expert=Ed_Morales
Labels: Environmental Insurance
What events have caused the most commotion in the environmental insurance marketplace?
Most of the changes we have witnessed can be connected to AIG. As one of the largest environmental insurers in the nation, AIG's much-publicized fall from grace has started a chain reaction that has redefined the major players in the market.
Many of AIG's customers are distancing themselves from the embattled firm and a number of competitors are ready to step in and garner their business. And as AIG continues to restructure, more defections are expected.
How will these smaller and lesser-known competitors prove their worth against a giant such as AIG?
They need to prove that while they may be "smaller" than AIG in terms of sheer asset, they make up for it in financial stability and growth.
A.M. Best, the primary insurance-rating and information agency, is the key to validating an insurer's financial strength and ultimately, its success in the industry. Any insurance provider that scores an A- or higher by A.M. Best is considered to be stable.
Companies such as Chubb Group, ACE and Zurich, possesses strong AM Best ratings, some even obtaining higher ratings than AIG. Whether risk managers or buyers are willing to trust these companies' financial stability and longevity largely depends on the A.M. Best ratings.
How will the recent entry of several new insurers, such as Ironshore, impact the market?
To understand the market impact, one needs to look at the "market capacity" the maximum amount of limit an insurer is willing to put on a per risk basis.
For example, a larger company such as ACE is willing to put up a maximum of $50 million in limits on any given risk, representing a very aggressive liability capacity. Smaller companies, such as Arch Insurance Group or Liberty will only provide up to $25 million.
Prior to new environmental insurers, such as Great American, entering the market, all insurers capped at $200 million. The cap has now increased by $50 million, expanding the overall capacity of the marketplace. This increase is very favorable to buyers, as it allows for brokers to market more aggressively and help their clients find the best coverage at the most competitive price.
Can we bank on these new insurers' environmental qualifications? What kind of expertise do they have?
Whether it's a new start-up company or an established company creating or expanding an environmental division, there is a need for specialized environmental underwriters who understand the intricacies of environmental policies. To find these specialists, many firms are turning to AIG.
A number of former executives from AIG Environmental since left to form a new insurance underwriting unit within Ironshore, a newer company with no current financial issues. As the flight of executives from AIG continues, many of these up-starts will look to leverage the opportunity to obtain top talent.
Have insurers been offering any new products in environmental insurance to entice clientele from other companies?
All insurers are offering the same products, the most standard being pollution legal liability. Even the newest environmental product is 10 years old. What has changed is the pricing and coverage, which has become more aggressive in light of increased competition.
How does the new growth in the environmental insurance market help brownfield development and awareness building for the industry?
Environmental insurance is a must for any brownfield development project. Before large and established insurers provided environmental coverage, opportunities to develop on environmentally at-risk land parcels were very limited. Now, with a larger capacity and competition fueling a buyer's market, brownfield developers have significantly more options for coverage.
Ed Morales
Senior Vice President, Environmental Risk Management
EnviroFinance Group (EFG)
http://www.envirofinancegroup.com
Article Source: http://EzineArticles.com/?expert=Ed_Morales
Most of the changes we have witnessed can be connected to AIG. As one of the largest environmental insurers in the nation, AIG's much-publicized fall from grace has started a chain reaction that has redefined the major players in the market.
Many of AIG's customers are distancing themselves from the embattled firm and a number of competitors are ready to step in and garner their business. And as AIG continues to restructure, more defections are expected.
How will these smaller and lesser-known competitors prove their worth against a giant such as AIG?
They need to prove that while they may be "smaller" than AIG in terms of sheer asset, they make up for it in financial stability and growth.
A.M. Best, the primary insurance-rating and information agency, is the key to validating an insurer's financial strength and ultimately, its success in the industry. Any insurance provider that scores an A- or higher by A.M. Best is considered to be stable.
Companies such as Chubb Group, ACE and Zurich, possesses strong AM Best ratings, some even obtaining higher ratings than AIG. Whether risk managers or buyers are willing to trust these companies' financial stability and longevity largely depends on the A.M. Best ratings.
How will the recent entry of several new insurers, such as Ironshore, impact the market?
To understand the market impact, one needs to look at the "market capacity" the maximum amount of limit an insurer is willing to put on a per risk basis.
For example, a larger company such as ACE is willing to put up a maximum of $50 million in limits on any given risk, representing a very aggressive liability capacity. Smaller companies, such as Arch Insurance Group or Liberty will only provide up to $25 million.
Prior to new environmental insurers, such as Great American, entering the market, all insurers capped at $200 million. The cap has now increased by $50 million, expanding the overall capacity of the marketplace. This increase is very favorable to buyers, as it allows for brokers to market more aggressively and help their clients find the best coverage at the most competitive price.
Can we bank on these new insurers' environmental qualifications? What kind of expertise do they have?
Whether it's a new start-up company or an established company creating or expanding an environmental division, there is a need for specialized environmental underwriters who understand the intricacies of environmental policies. To find these specialists, many firms are turning to AIG.
A number of former executives from AIG Environmental since left to form a new insurance underwriting unit within Ironshore, a newer company with no current financial issues. As the flight of executives from AIG continues, many of these up-starts will look to leverage the opportunity to obtain top talent.
Have insurers been offering any new products in environmental insurance to entice clientele from other companies?
All insurers are offering the same products, the most standard being pollution legal liability. Even the newest environmental product is 10 years old. What has changed is the pricing and coverage, which has become more aggressive in light of increased competition.
How does the new growth in the environmental insurance market help brownfield development and awareness building for the industry?
Environmental insurance is a must for any brownfield development project. Before large and established insurers provided environmental coverage, opportunities to develop on environmentally at-risk land parcels were very limited. Now, with a larger capacity and competition fueling a buyer's market, brownfield developers have significantly more options for coverage.
Ed Morales
Senior Vice President, Environmental Risk Management
EnviroFinance Group (EFG)
http://www.envirofinancegroup.com
Article Source: http://EzineArticles.com/?expert=Ed_Morales
Labels: Environmental Insurance
posted by zzzzzzzzzzz at
11:13 PM
1 Comments:
This policy is somehow new to me as I have never heard or read about it earlier. I am thankful to you for your efforts that you have put in writing this informative article to make people familiar with this type of insurance policy. Thanks.
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