'Transparent' Collateral
A large commercial material company with a large deductible program decided to market its primary workers’ compensation, general liability, and automobile liability policies. This company was very dissatisfied with its incumbent carrier’s collateral position and with the carrier’s refusal to satisfactorily explain its collateral calculation to the insured.
Given the significance of the issue, senior Old Republic Risk Management personnel met with the company’s executives to develop a collateral solution that fully disclosed how the collateral would be determined and how often it would be provided. After reviewing the actuarial work product, we agreed to use the company’s own third-party actuarial firm to help determine the collateral need as well. While Old Republic was competitively priced premium-wise, we offered a collateral solution that provided predictability for future renewals and was subsequently awarded the company’s business.
Old Republic put forth solutions to the company and its Broker that helped solve their collateral concerns. Our easy access to decision-makers and transparent communication approach afforded the company long-term security.