Lloyd's is renowned as the home of hard-to-place business, here we take a look at one of the more unusual risks placed in the past year.
When asked to insure a television programme whose title translates to “I Will Do Everything”, many underwriters might raise an eyebrow. More so when they discover that the risk is for a Czech programme whose basic premise is “Don’t Try This At Home”. And the broker is seeking reinsurance cover for accidental death and permanent disability coverage for contestants who’ll be taking part.
Not Lloyd’s. While insuring contestants who are about to be immersed in a barrel of snakes or forced to eat creepy crawlies may not be bread and butter business, it is just one of the more unusual risks covered by the market.
David Clarke, underwriter at Creechurch Syndicate 1607, more usually underwrites personal accident risks in the aviation market. He says: “At first glance the risk may seem unappealing, but the show is produced under very closely controlled and monitored circumstances. The risks associated with the stunts are more psychological than physical.”
Chris Townley, from Benfield’s Facultative Solutions Team, took the risk to Creechurch due to the willingness of Lloyd’s to cover more complex and specialist risks. As Townley points out: “The Lloyd’s market is well known for its innovative approach and openness to consider risks which other markets may not.”
Clarke makes it clear that the policy was not written for novelty value and that nothing is more important than fully understanding the risk involved and pricing it correctly. He cites an example of another unusual event that crossed his desk last year.
In this case a travel agent wanted accidental death and permanent total disablement cover for a group of European tourists many of whom were over the age of 60 and who were travelling to Siberia to take part in an annual bear hunt. Clarke’s requests for additional information about the claims history of the risk remained unanswered, so he declined the risk. “The information and numbers must always stack up,” he says.
David Clarke
Tel: +44 (0)20 7150 9978
Email: David.Clarke@creechurch.co.uk
