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Press Release
Parsyl Launches First Perishable Insurance Consortium at Lloyd’s
April 4, 2023
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Blog
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.
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
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.
