Marsh’s Victor launches reciprocal insurance exchange amid ‘significant strain’ on property cat
Marsh-owned managing general underwriter (MGU) Victor Insurance Managers is launching a reciprocal insurance exchange backed by private equity firm Gallatin Point to bring additional US property catastrophe capacity to small commercial risks as well as coastal homeowners businesses serving policyholders in states along the Gulf and Atlantic coasts.
The Victor Insurance Exchange (Victor Exchange) aims to deliver additional US property catastrophe capacity to existing and new policyholders of Victor’s subsidiary, International Catastrophe Insurance Managers (ICAT).
The reciprocal insurance exchange is owned by its policyholders and capitalised by a combination of surplus notes, member surplus contributions, and any retained future profits.
Initial capitalisation for Victor Exchange will be in the form of a surplus note wholly provided by Gallatin Point Capital.
Victor Exchange is licensed as a domestic surplus lines insurer in Delaware. ICAT will be the exclusive managing general agency and through its subsidiary, Boulder Claims, act as the third-party claims administrator.
Victor Exchange joins ICAT’s existing carrier panel offering small commercial property catastrophe coverage in the 42 states in which ICAT operates. In addition, ICAT will immediately launch a coastal homeowners program serving policyholders in states along the Gulf and Atlantic coasts.
Brian Hanuschak (pictured), CEO of Victor, said: “The impacts of increasingly frequent and severe storm activity has led to significant strain on property catastrophe insurance capacity globally and, in particular, the US. By forming Victor Insurance Exchange, Victor and ICAT are creating a new source of capacity for agents and brokers while providing more long-term stability for our small commercial and residential policyholders.”
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