Exploring the Rise of Co-insurance

Tony from Cover Magazine speaks with Dion Rheeder, the regional manager at Lombard Insurance, about the various forms and applications of Co-insurance and the drivers behind an increase in co-insurance in the market.

A few points made by Dion:

• Co-insurance involves brokers seeking additional insurers to fill capacity gaps in policies.
• Lack of capacity is the main driver behind the increase in co-insurance.
• Reinsurers have reduced capacity allocations due to significant losses.
• Self-insurance is used when slips cannot be filled entirely or when clients choose to self-insure a portion of the risk.
• Co-insurance provides opportunities for insurers like Lombard to take follow lines and increase their written premium.
• Brokers face challenges in finding suitable coverage and managing multiple insurers in co-insurance scenarios.
• The cost of facultative cover is making co-insurance more viable compared to seeking coverage from the facultative market.
• Co-insurance has become the new norm, requiring brokers to adapt and restructure themselves accordingly.

Listen to the conversation with Dion Below: