XL Capital has unveiled details of its primary commercial casualty strategy for the US at the RIMS conference currently taking place in San Diego.
It said it is to enter the market for primary casualty risk management programmes for major US corporations.
The company will also launch an excess workers compensation division to provide statutory catastrophic protection for self-insureds.
Both of these initiatives will form part of XL Insurance (XLI), the commercial large account global property and casualty insurance business subsidiary of XL Capital.
XL Insurance chief executive Clive Tobin described the initiatives as “an important strategic diversification designed to strengthen XLI's position in the US market”.
He said: “Serving the primary commercial casualty market is a vital, missing piece of our strategy in the US, where we are largely known as a specialty insurance carrier.
“Judging by the market response thus far, it is clear that buyers are looking for alternative carriers with excellent levels of security in the AA range in a market in which the number of highly-rated insurers has diminished over recent years.
“With our strong financial ratings, our recognized brand strength and technical expertise, we will be able to meet this demand while building closer, long-term relationships with an expanding customer base.”
Tobin said the move into the US primary commercial casualty market was complementary to its existing operations in Europe. The move would allow XLI to offer primary and excess liability insurance to US clients in over 60 countries.
Dennis Kane, executive vice president responsible for primary casualty risk management programmes, said: “Our strategy involves a cost effective focus on risk retention and risk transfer opportunities, while outsourcing claims services and loss control services.
“We will target insureds with expected primary losses in workers compensation, general liability, and auto of $1.5m or more.”
Kane continued: “We have recruited an experienced team of underwriting, actuarial, financial, claims, legal and administrative professionals for a centralised primary underwriting facility in New York City and secured the necessary regulatory filings needed to compete in this market segment.”
