Underwrite the Client, Not the Class™

A1 Policy™ is a new and innovative way to underwrite corporate risk through a cross-class, single annual
aggregate policy, providing stability, capital efficiency and a clearer pathway to capital markets.

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A1 Policy provides stability and supports a long-term view backed by capacity providers that are ‘A’ rated and above

 

3 year annual aggregate policy across all risks above an attachment point

Reduces the prospect of gaps or overlaps in coverage occurring

Provides a clearer pathway to capital markets

Bring some stability to your business

 

 

The AkinovA A1Policy™ Q&A

  • What is AkinovA’s role?

    AkinovA is a secure, globally regulated, end-to-end electronic marketplace for the transfer and trading of insurance and reinsurance risk. AkinovA is the owner of the A1Policy, its wording and the technology that supports it.

  • Is the AkinovA infrastructure regulated?

    AkinovA’s Bermuda subsidiary is regulated by the Bermuda Regulatory Authority under a novel regulatory framework and is the only successfully authorised entity to date. It is authorised to trade with brokers, insurers, reinsurers, ILS funds, capital market investors, listed corporates, data analytics and service providers in 41 countries. AkinovA Ltd. is FCA authorised (UK Appointed Representative as an intermediary for both Insurance and General Investments) and ISO27001 certified.

  • Does AkinovA take principal risk (i.e. are you a carrier)?

    No, we are not a carrier. AkinovA is regulated as an Insurance Marketplace but neither as a broker nor as a carrier of insurance. As a result, AkinovA remains neutral, is already multi-broker, is regulated whilst it does not compete with its clients and ecosystem and is global. 

  • Is AkinovA a broker?

    No, we are not a broker. We are regulated as an insurance marketplace, but neither as a broker or a carrier. We remain neutral in any given transaction

  • Is AkinovA an MGA?

    No. AkinovA is not an MGA at this time although it is likely that an MGA will be required to provide MGAstyle services on behalf of carriers in the medium term.

  • Who owns the data placed on AkinovA?

    The data on AkinovA are owned and controlled by the parties who provide them (the client carriers and other advisors such as broker, actuaries).

  • Who can access my data through AkinovA?

    Only AkinovA authorised personnel and people / entities authorised by the client have access to client data through AkinovA.

  • Is AkinovA’s technology secure?

    Yes, our technology is secure and ISO27001 compliant.

  • Is AkinovA licensed to place multi-class deals and, if so, in what territories?

    Yes, AkinovA Bermuda is licensed under Bermuda law to place multi-class, multi-year contracts in 41 countries.

  • What is the A1Policy?

    The A1Policy is a technology-enabled integrated insurance solution for Fortune 500-type companies providing excess [difference in limits] umbrella coverage across multiple lines of business. It is not only designed to transfer traditional insurance risk but also generate meaningful capital relief for both buyers and sellers. Simultaneously, A1Policies are packaged into baskets of risks and transformed into the capital markets thereby creating much needed new capacity to underwrite existing and new risks

  • What is the A1Policy process?

    Typically, this would entail the following steps:

    Provision by the client or their representative of historical claims and exposure information (ideally at least the past 5 years) by class of business including EP curves / distributions and parameters followed by replication / validation of client ground-up stochastic model.

    Inclusion within model of expiring / renewal programme with necessary parameters and assumptions for expenses / brokerage etc.

    Inclusion of A1Policy options with necessary assumptions.

    Comparison of structures using appropriate metrics and discussion.

    If necessary, AkinovA can assist in the modelling of the risks.

  • Who owns the A1Policy wording?

    The A1Policy wording is owned by AkinovA.

  • Can I see the A1Policy wording?

    Yes. Our General Counsel will be delighted to walk you through the A1Policy wording when convenient.

  • Why is the A1Policy wording a standardised framework?

    The A1Policy wording is standardised to facilitate the ease of transfer of risk between buyer and seller / risk taker (carrier / capital markets) in addition to allowing AkinovA to bundle A1Policy contracts together into baskets of risk to better access capital markets capacity

  • What is the A1Policy minimum ticket / cover size?

    There is no minimum ticket / line size though typically companies that most benefit from the A1Policy are those with a significant risk management function and / or have their own captive(s).

  • Where do the data come from?

    The data come direct from the proposing client or via their chosen Concierge Partner (see below).

  • As a carrier, will I get all the data on all the lines of business or just as one aggregated A1Policy?

    As risk taker (carrier / capital market), you will receive data for all lines of business individually being considered. This is important as the A1Policy is an umbrella policy and therefore it will be necessary to allocate premium, claims and capital by line, not just on an aggregate basis. 

  • As a risk taker (carrier / capital market), do I need to underwrite all Lines of Business (LOBs) or can I limit my appetite to selected LOBs (carve-outs)?

    The A1Policy, by design, is a whole account, multi-year contract providing annual coverage on an Each and Every Loss (EEL) and in the annual aggregate as this provides the maximum amount of diversification and hence cost and capital efficiency. However, the A1Policy app enables the corporate, its advisors and carriers to attach each LOB at different levels to match appetite and needs.   

  • Does the A1Policy replace my existing policies / coverages?

    No, the A1Policy supplements and follows the terms of your existing coverages. 

  • Who does the underwriting?

    AkinovA provides preliminary risk analysis, underwriting and indicative pricing to determine the efficacy of the A1Policy relative to the current (re)insurance structure but it is ultimately the carrier that will perform its own due diligence and determine whether the risk / price is acceptable.   

  • Does AkinovA set the price?

    AkinovA does provide indicative pricing based on its own view of the risk but it is a process of negotiation between the buyer and the seller that will ultimately set the price. 

  • Don’t you think the A1Policy is only a soft or hard market policy?

    The A1Policy is tailored to each individual client’s requirements regardless of the state of the market. Being a multi-class / multi-year policy, it is intended to smooth out the effects of volatilities in the insurance marketplace. This provides benefits to both buyer and seller so as to engender a longer-term relationship. The A1Policy process determines the efficacy of the A1 approach relative to the buyer’s and seller’s existing arrangements. Both sides are thus enabled to make the most informed decisions. 

  • Who does the claims-handling?

    Your current insurance provider(s) / current broker will perform claims-handling advocacy services. AkinovA will respond excess of those arrangements. The lead carrier on the A1Policy and / or the MGA that originates and underwrites the business will handle claims that attach to the A1Policy (recognising that the underlying insurance programme will have its own embedded claimshandling protocols). 

  • For alternative capital, how do I know collateral is posted?

    There is no need for collateral because there is a standard capital markets instrument with the usual chain of security implemented in full.  

  • Who approaches alternative capital?

    As part of our regulated functions, AkinovA can approach all forms of capacity on behalf of the client, including alternative capital. 

  • Does your modelling follow standard actuarial techniques and principles?

    Yes

  • As a corporate or carrier, can I work directly with AkinovA or do I need a broker?

    Subject to local regulations, corporates and carriers can engage with AkinovA directly or via their broker. 

  • Who is the Integration Partner and what is their role?

    The Integration Partner is a totally separate role to that of the Concierge Partner. The Integration Partner ensures all data flows are technologically enabled.