McGill and Partners, an independent global specialty insurance and reinsurance broker, has launched a new trade disruption insurance facility in collaboration with Tokio Marine Kiln (TMK) and Convex.
This innovative partnership is designed to provide coverage for trade disruptions, offering limits of $95m, with TMK leading the initiative.
The collaboration leverages Altana’s AI-powered platform, which enhances the understanding and underwriting of trade disruption risk by streamlining TDI submissions, offering underwriters greater visibility, and enabling broader coverage and higher limits across sectors and geographies.
By offering a comprehensive view of global trade and supply chains, Altana’s technology helps improve the accuracy and speed of service delivery, allowing McGill and Partners, TMK, and Convex to offer more substantial and tailored coverage to clients facing trade disruptions.
This facility aims to provide substantial coverage for clients affected by interruptions in global trade, specifically targeting disruptions between specified locations, as trade disruptions become more frequent due to geopolitical issues.
The partnership brings together McGill and Partners’ digital-first approach to risk management with the established expertise of Tokio Marine Kiln and Convex in handling complex trade risk. The use of AI technology ensures that businesses can better navigate the complexities of global trade.
Nicky Payne, Partner of Capital Solutions and Treaty Reinsurance at McGill and Partners said, “Given the current geopolitical climate, the launch of our groundbreaking trade disruption facility is exceptionally timely, as incidents of this nature are on the rise.
From the start, McGill and Partners has been built on digital-first principles. We understand the importance of capitalising on this technology, which allows us to pioneer unique and innovative solutions for our clients. This product is a clear demonstration of those principles.
Working with TMK and Convex, both recognised leaders in the market for trade disruption risk, was an obvious choice. I am proud that, together, we have brought this facility to the market for our clients.”
Ed Parker, Head of Special Risks at TMK commented, “Tokio Marine Kiln has been at the forefront of innovation in this class since we launched the world’s first trade disruption cover over thirty years ago. Driving and supporting new solutions which can address the challenges which our clients are facing is core to our offering and central to TMK’s business philosophy.
Supply chains, globally, have become increasingly complex and their fragility has been underscored by a series of geopolitical shocks in recent years. AI offers the potential for us to better understand our clients, to track the movement of goods and the aggregation of exposures in real time. These new tools can enhance our offering, allow us to broaden our terms due to a greater insight into our clients’ businesses and enable us to further extend our support across supply chains. We are pleased to lead this new facility and look forward to working with our partners to continue to enhance the service we offer to the global trade sector.”
Evan Smith, co-founder and CEO of Altana added, “Managing supply chain disruptions is a key priority for risk managers. This TDI (trade disruption insurance) facility represents an important step toward the delivery of AI-powered insurance solutions. We’re excited to join forces with McGill and Partners, TMK and Convex, to support businesses in managing through increasing global supply chain dislocations.”
Copyright © 2024 InsurTech Analyst
