Bowring Marsh, the specialist international placement broker at Marsh, the world’s leading insurance broker and risk adviser, today announces a major enhancement to coverage on the property facility it launched successfully two years ago. Under the new terms of the facility, up to $450 million of non-critical catastrophe capacity is to be made available in the London market for US and Canadian risks. Previously, the facility provided for a maximum of $262.5 million of cover for non-critical catastrophe cover.

The facility has been extended to include flood, windstorm, fire and earthquake risks, which had previously been excluded. Available to companies worldwide, it covers all risk of physical loss or damage, including boiler and machinery. The facility can also provide for up to $176 million of critical catastrophe capacity, an increase from the original $111.75 million.

Two Lloyd’s syndicates, Catlin Syndicate SJC2003 and Ascot Syndicate ASC1414, continue to lead the cover. They have the authority to bind capacity on behalf of many following markets, allowing cover to be bound within 48 hours.

Richard Marks, a Senior Vice President in Marsh’s US Property Placement Practice, said: “Two years after its launch this facility remains one-of-a-kind in the market. In that time, household names in the healthcare, retail, manufacturing, education and communications, media & technology sectors as well as public sector entities have taken up cover using this facility. Key attractions for them have been the fast and efficient access to large amounts of insurance capacity.

"The improvements we have negotiated with the market will make this facility even more attractive. As companies manage their property risks more proactively they want to have the flexibility be able to cover themselves for potential catastrophes outside of the well-known California earthquake zones and the Gulf of Mexico windstorm region. They will now have the potential to access such cover within a short time frame and be able to take cover at lower levels, as the minimum attachment point has fallen from $250 million to $50 million.”

Nick Bacon, CEO-designate of Bowring Marsh, said: “This facility is a key differentiator for Bowring Marsh and testament to our commitment to innovation that meets the changing risk needs of our clients. With these significant improvements, I am sure it will build on its popularity and success to date.”

Security for the product is provided through syndicates at Lloyd’s and London company market insurers. The mining and processing of natural resources and contingent business income classes remain excluded from coverage.