QBE partners with Arrowhead to grow small commercial insurance business
Re/insurer QBE North America, part of QBE Insurance Group, has signed a small commercial business agreement with San Diego-based Arrowhead General Insurance Agency.
Under the agreement, which is effective from July, Arrowhead will become the programme administrator for QBE North America's small commercial insurance portfolio, consisting of property and casualty business accounts under $100,000 in premium.
Walter Grote, currently senior vice president of small commercial at QBE North America will join Arrowhead to lead Arrowhead Core Commercial, which will be headquartered in Sun Prairie, Wisconsin.
The move is a part of QBE's strategy to profitably grow in the small commercial property and casualty insurance space.
"QBE is fully committed to the small commercial business and the agents and brokers who have helped us build it," Kathleen Zortman, president of property and casualty at QBE North America, commented.
"As we evaluated how to take the business to the next level, we realised that tapping Arrowhead's expertise and technology platform offered the quickest and most effective way we could provide our distribution partners with the greatest ease of doing business as well as innovative product improvements that deliver on our promise as an integrated specialist insurer. The initial feedback we have been getting from agents has been very positive."
The company stated that QBE will retain full financial responsibility for premiums and losses and manage the products and appetite for risk. As programme administrator, Arrowhead will perform all underwriting and servicing responsibilities on behalf of QBE, with the exception of claims management, which will remain with QBE.
It added that to ensure consistency in underwriting approach and relationships with existing the agents, QBE underwriters and operations professionals assigned to commercial accounts under $100,000 in premium will become part of the Arrowhead team.
According to the statement, within the next year the QBE small commercial products will be transitioned to the Arrowhead policy platform on a state-by-state basis, with a complete rollout to all states by the end of 2018.
Chris Walker, CEO of Arrowhead, said: "This partnership is built on a successful 20-plus-year relationship we've had with QBE as their programme administrator in other business segments. QBE's small commercial business will be the centrepiece of our offering, complementing our other products in the small commercial space. In fact, given its central role, we'll be calling it Arrowhead Core Commercial. We'll be able to give agents a very well-rounded product offering in one place with the strength and unwavering commitment of QBE."
"The launch of Arrowhead Core Commercial is a natural fit for Arrowhead, which already features more than 20 products in personal, commercial, specialty, professional liability and public entity spaces," Walker added.
"We're excited about bringing the Small Commercial team from QBE onboard. Walter and his team of highly professional, talented people will enhance the strength of our national footprint and our leadership position in National Programs."
Today’s stories
Ed appoints new chair and CEO to build LatAm business
Markel merges global, wholesale units under president Sanders
WR Berkley splits up specialty group to form two new units
Swiss Re expands in UK regional market
Willis Towers Watson names global head of risk consulting business
Chubb Global Markets promotes Largeron to senior role
Did you enjoy reading this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
