60 seconds with...Rob Cage

What challenges do you face as Chubb Syndicate 1882 establishes itself in the market?

Chubb 1882 is a non-turnkey and creating the management agency has been a very unique challenge, but highly rewarding now it is all in place. I think the challenge, and indeed the opportunity, will be to successfully combine the most powerful insurance brand in the world, Lloyd’s, with the Chubb brand. I believe we can really bring something new to the market.

What classes of business is 1882 planning to focus on and how are market conditions influencing how you plan to write business?

The syndicate will write marine hull/cargo, liability, marine treaty, construction, professional indemnity, D&O, environmental and event contingency business. We will also focus on E&O for the technology industry, life science and general liability risks. These are all lines we are well known for writing at Chubb.

Markets conditions are currently varied. In some lines we are seeing positive rate increases and in others the market is off a few points. Generally we are not in the lines that are suffering most pricing pressure. We are not in the business of undercutting existing markets and in the areas that we have particular specialist expertise we plan to be the lead market.

How will a Lloyd’s presence complement the wider Chubb business?

Our syndicate at Lloyd’s completes our global wholesale strategy and complements our existing retail distribution. The Lloyd’s subscription business model and its licenses to write business in countries such as South Africa and Israel mean that we will be able to be involved in risks that previously we would not have written, or even seen. On the other hand we will be able to offer things to Lloyd’s, such as our specialist underwriting expertise in areas like biotech and technology, that will mean the syndicate will attract new business into the market.

The market is facing a tough year in 2010, according to Lloyd’s CEO Richard Ward. What is the best way forward in these daunting times?

We have set out to build our syndicate on very solid foundations, and we have created the infrastructure during a time when we are seeing losses in some classes and rating pressure in others. We will not be seeking imprudent growth at this stage of the cycle. At the moment our approach is all about developing our platform, keeping our powder dry and adding capacity to the market – only when the market needs it.

Our business plan is based on lines that we have experience in writing in the company market, and we therefore know well. We are not going to be taking an opportunist approach based on the premise that today’s market conditions will improve significantly.

You’re a keen sailor, can you tell us about this other “profession” and what you like about it?

I was born into a sailing family and had little alternative as to my choice of sport. But sailing has become part of my life, and my whole family are into racing small boats, so it is a good way for us to spend time together. These days I race a Laser on the Masters (veterans) circuit. I am currently focusing on the World Masters Championship later this year and am very keen to improve on my silver medal in 2007. I enjoy getting on the water and racing, it’s a mix of competition, fresh air, exhilaration and of course the camaraderie.

How did your career as an underwriter develop?

Through my passion for sailing I got a summer job settling yacht claims for Navigators and General. I then started to work full time as a Yacht Underwriter. I quickly moved into marine cargo for the parent company Eagle Star and by the time they were sold Zurich, I was worldwide marine manager for Eagle Star RE. A brief spell followed at GE Frankona and then Wurtt. The impact of 9/11 saw me leave Wurtt before joining Chubb seven years ago, most recently running Chubb’s commercial insurance division in the UK.

What stimulates you about working on the box at Lloyd’s?

There is only one Lloyd’s. The atmosphere has a buzz about it and you never know which risks you are going to see. The challenge is to confidently negotiate your way through the most sophisticated insurance market in the world.