Berkshire Hathaway Specialty Insurance Company (BHSI) announced that it has withdrawn from the Hong Kong Employees Compensation (EC) terrorism pool (the pool) effective December 1, 2018. This decision benefits all BHSIs new and existing EC customers for policies incepting or renewing on or after December 1, 2018. BHSI is now the first insurer in Hong Kong to provide EC terrorism coverage to customers directly, backed by Berkshire Hathaway Specialty Insurance Companys financial strength.
The EC terrorism pool was established to provide terrorism cover for Hong Kong EC policyholders after the September 11th terror events when capacity had receded in the international markets. Whilst participation is voluntary, the pool provides a maximum limit of HK $10 billion which until now was shared among all EC policyholders for all terrorism claims on a first come, first served basis. Insurers participating in the pool must charge their EC policyholders a 3% levy on policy premiums which is then remitted to the Hong Kong SAR Government. According to the terms of the pool, those participating insurers are not obligated to pay EC terrorism claims to their customers until the pool first pays the insurer for the claims.
Effective December 1, the EC terrorism coverage provided by BHSI is no longer subject to any of the pools restrictions. BHSIs customers are no longer subject to the 3% levy on their EC policy premiums; BHSI policyholders no longer need to share a limit with all the other EC policyholders in Hong Kong; and payments for terrorism claims are no longer contingent upon payment or reimbursement from the pool.
The feedback from the customers and brokers we have discussed our approach with has been incredibly encouraging, said Marc Breuil, CEO of BHSI Hong Kong. BHSIs Employees Compensation policies are now exclusively backed by its own financial strength “ which carries the same S&P rating as the Hong Kong SAR Government “ and provide EC terrorism coverage to policyholders without the obligation to pay the levy. We are excited to offer this market-changing coverage development to our current and future EC customers, said Mr. Breuil.
To learn more, contact [email protected].
WANT TO BUILD A FINANCIAL EMPIRE?
Subscribe to the Global Banking & Finance Review Newsletter for FREE Get Access to Exclusive Reports to Save Time & Money
By using this form you agree with the storage and handling of your data by this website. We Will Not Spam, Rent, or Sell Your Information.
Berkshire Hathaway Specialty Insurance (www.bhspecialty.com) provides commercial property, casualty, healthcare professional liability, executive and professional lines, surety, travel, programs, medical stop loss, accident and health, and homeowners insurance. The actual and final terms of coverage for all product lines may vary. In the Asia Middle East region, it underwrites on the paper of Berkshire Hathaway Specialty Insurance Company, which holds financial strength ratings of A++ from AM Best and AA+ from Standard & Poors. Based in Boston, Berkshire Hathaway Specialty Insurance has offices in Atlanta, Boston, Chicago, Houston, Indianapolis, Irvine, Los Angeles, New York, San Francisco, San Ramon, Seattle, Stevens Point, Auckland, Brisbane, Dubai, Dublin, D¼sseldorf, Hong Kong, Kuala Lumpur, London, Macau, Melbourne, Munich, Perth, Singapore, Sydney and Toronto.
For Berkshire Hathaway Specialty Insurance
Cherry Gao, +852 3729