---
title: What The Essential Consortium Means for Insureds and Brokers
description: Dive into the world of insurance consortia and learn more about Essential, the first and largest insurance consortium for perishable cargo insurance.
image: https://www.parsyl.com/hubfs/230331_Blog_Consortium.png
---

Blog

# What The Essential Consortium Means for Insureds and Brokers

![What The Essential Consortium Means for Insureds and Brokers](https://www.parsyl.com/hs-fs/hubfs/230331_Blog_Consortium.png?width=800&height=430&name=230331_Blog_Consortium.png)

In this post, we'll dive into the world of consortia and explore how they work in the insurance industry. We'll also take a closer look at ‘Essential’, the first and largest consortium for perishable cargo insurance, and what it means for those insureds and brokers.

 

## **Let’s break it down… What is an insurance consortium & how does it work?**

**Definition:** A consortium is a group of insurance companies or syndicates and managing agents that form a partnership to provide insurance coverage for a specific risk or group of risks. 

**How it works: **Each member of the consortium contributes a portion of the insurance limit, sharing in the exposure and any potential claims. 

#### Why it matters:

- **Risk is spread:** Risk is shared among the members of the consortium, diluting individual exposure. Members are therefore more likely to insure goods they would otherwise avoid. 
- **Alternative capacity: **Because a consortium is usually made up of leads or supporting markets, brokers get access to an expert with more capacity that can make a larger, meaningful impact.   
    - **A lead:** Someone who knows the risk and exposure, and is an expert in the insurance coverage being offered.
    - **Supporting markets:** Also called ‘followers’ or ‘smart trackers’, an insurance market or company that provides additional capacity or support to the primary insurer or the lead insurer.

![Press Release_Essential](https://www.parsyl.com/hs-fs/hubfs/Press%20Release_Essential.png?width=614&height=307&name=Press%20Release_Essential.png)

### **The Essential Consortium**

Essential, the first of its kind, is focused specifically on cargo insurance for perishable and ambient goods, and the wider essential supply chain.

Important to know about Essential:

- A multi-year agreement that allows Essential to underwrite risks up to **$55 million** (and counting...).
- Supporting the Essential Consortium are Lloyd’s Syndicates including Parsyl 1796, SCOR 2015, RenaissanceRe Syndicate 1458, and other leading smart trackers.
- Opens up brand new lead capacity for historically underserved industries, including food & beverage, life science, and pharmaceuticals.

###### [READ THE PRESS RELEASE](https://www.parsyl.com/media/parsyl-launches-first-perishable-insurance-consortium-at-lloyds)

How Essential benefits brokers:

- Provide specialized cargo insurance coverage with a focus on lead terms across primary and excess 
- Big lead terms create greater options for building towers for clients and brokers  
- Policies leverage Parsyl’s unique expertise in temperature-sensitive goods and data-driven underwriting. 

How Essential benefits clients/insureds:

- Get cargo insurance coverage for niche industries.
- Reduce the likelihood of claims being denied due to gaps in coverage.
- More stability and consistency in coverage over time. 
- Coverage generally remains available and affordable, even in times of high demand or when there are large claims.
- Access discounts for better risk management and risk mitigation - make your supply chain data work for you.

 

 

### Start your journey today. Get a quote.

 

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