What can "Property Investors" and "Motor Vehicle Owners" learn from Westgate Shopping Mall's Insurance Policy?

What can "Property Investors" and "Motor Vehicle Owners" learn from Westgate Shopping Mall's Insurance Policy?

The purpose of this article is to piece together information from various media sources in order to educate ourselves about Risk Management strategies used on large structured transactions. Its  brief, summarised, without going into too much detail.

"A Syndication is a Risk-Management Tool used, in Banking and Insurance, to share risks, particularly if the Risk Underwriter's Balance Sheet is unable to absorb the risk as a whole or in part."First Liberty Insurance Agency


http://www.africareview.com/Business---Finance/Westgate-insurer-faces-76m-dollar-compensation-bill/-/979184/2008212/-/format/xhtml/-/ram6jbz/-/index.html

Lead Arranger - London-based Chaucer Syndicate Ltd

The Lead Arranger's role is basically Origination, Structuring and Negotiation of the Transaction upto deal conclusion. The Lead Arranger may have a Co-Arranger, in this case the Local Insurer. There can be a number of Insurers in the Syndication.

http://www.chaucerplc.com/chp/en/aboutus
We are a specialist insurance business, underwriting risks at Lloyd's, the world's leading insurance and reinsurance market.

We are a member of The Hanover Insurance Group, Inc. (NYSE: THG), based in Worcester, Massachusetts, and ranked among the top 25 property and casualty insurers in the United States

We are committed to underwriting excellence and our objective is to build a leading Lloyd's insurer.

We deploy specialist underwriters in all major insurance and reinsurance classes, balancing global marine, energy, non-marine and aviation with UK motor and nuclear.

Headquartered in London, we have international operations in Buenos Aires, Copenhagen, Houston and Singapore to provide access to high quality business worldwide.


http://www.businessdailyafrica.com/Westgate-insurer-faces-Sh6-6-billion-compensation-bill/-/539546/2007294/-/qpfnja/-/index.html

Sony Holding Limited, a real estate company led by Alex Tachenberg, insured Westgate Shopping Mall through UK’s Lloyd’s market for about Sh6.6 billion.

The Lloyd’s market is a unique insurance provider with an internationally recognised brand whose business is underwritten by nearly 90 insurers who accept risk on a shared and competitive basis.

The insurance deal included a cover against political violence where acts of terrorism fall.


http://mobile.nation.co.ke/business/Double-loss-for-businesses-at-Westgate/-/1950106/2011374/-/format/xhtml/-/hj0u1mz/-/index.html

KenIndia insurance company had re-insured the building to Lloyd and African Trade Insurance Agency-ATI.



http://www.africareview.com/Business---Finance/Westgate-insurer-faces-76m-dollar-compensation-bill/-/979184/2008212/-/format/xhtml/-/ram6jbz/-/index.html

The Times of India reported that the mall that was built by Indian construction magnate Lakshman Raghavani and was initially priced at Sh4.2 billion ($48 million).

Knight Frank, an upmarket property valuer, told the Business Daily that the building could not be sold for less than Sh6.9 billion ($79 million).

How much does Terrorism Risk Cover Cost?

"Between 0.25% - 1.5% per annum" per annum" per vehicle, subject to Terms and Conditions. 


Ex-Gratia Payments - The event was significant and, where Insurers are not liable, then they can only make payments out of "goodwill".


Talk to First Liberty Insurance Agency

Please note that all the images are not owned by First Liberty Insurance Agency, but are included only for educational purposes.