Building Block PCC Ltd chief executive Paul Brierley has urged brokers to not to turn their backs on unrated insurers despite the recent difficulties posed by the demise of Gable and Enterprise.
Brierley said that unrated insurers fulfilled an important role in the UK broking sector. “Those that are well-managed and well-regulated are here to stay and likely to play a growing role in the UK broking market, especially as the UK moves towards Brexit.”
Brierley said: “Some Brokers have commented that they are being forced to choose unrated paper because UK insurers’ risk appetite is shrinking and it is becoming ever-harder to place business over here in the UK.”
He went on: “So it is essential that brokers continue to have a range of options for their customers, and if they do their homework they will find there are plenty of well-run insurance companies in the European Economic Area (EEA) wanting to do business with them.”
Brierley pointed to Malta, where Building Block PCC is based, as an example of a well-regulated market with strong ties to the UK, especially in financial services (FS). “Malta has full EU membership, a high quality FS labour force, and a legal framework modelled on English law.”
He added: “The Malta Financial Services Association (MFSA) is innovative, robust yet flexible, as brokers will discover on closer examination.”
“At Building Block we are confident in our ability to offer products and services of a quality at least as good as in the UK, particularly high volume, low value, short tail risks, with our own capacity and capital in accordance with EU statutory requirements. And, despite our Malta heritage, the team has a high level of knowledge and experience of the UK insurance market.”
Brierley said that during the past 12 months, the business, which is licensed to write 16 classes of business, had delivered seven niche product lines and had a further 14 in build phase.
“Building Block demonstrates that Malta-backed insurers offer an excellent alternative to UK providers, he said. “We look forward to continuing to help our partners take full advantage of our innovative and cost efficient underwriting solutions across both the EU and the EEA.”