Client Success Stories
Grain Facility
Client Challenge
The price availability and market offerings for grain cooperatives in the US market are limited and narrow in their offering. The specific challenge in this space was providing a comprehensive, well-rounded and competitive solution for clients, positioning Lockton as the obvious first choice provider.
Lockton Specialty Solution
Leveraging a long-term collaboration between George Moss and Scott Cornell’s Kansas City unit, our North American Property team brought 12 underwriters to Kansas City for three tours around grain coops owned by prospective facility clients, providing a hands-on approach to informing the underwriters on the class of business and prove Lockton’s expertise in this space, positioning us as the lead broker in the class from a market perspective. This led to the creation of a $25 million primary capacity facility exclusively accessed by Lockton. The facility offers broader coverage with standardized terms that improve on current U.S. market offerings, integrating with Lockton’s STP team for stock placement through their CommoditySure offering.
Client Result
Lockton secured exclusive access to a $25 million facility, that offers grain cooperatives broader and more competitive coverage. With 12 pre-agreed prospects, the goal is now to secure around 20 accounts in the first year and position Lockton as the leading broker in this space.
Lockton secured exclusive access to a $25 million facility
Syngenta Crop Protection AG - Agriculture
Client Challenge
Syngenta is a leading agribusiness with $33.4 billion in global revenue. Lockton faced the challenge of competing for its business across multiple global insurance lines: Property, Liability, Cyber, and Directors & Officers (D&O). The task was to secure coverage in these highly competitive areas whilst addressing Syngenta’s complex risk profile and ownership structure – additionally competing with an incumbent provider on the Property line.
Lockton Specialty Solution
Lockton leveraged a strong multidisciplined team to present to Syngenta, showcasing Lockton’s innovative solutions tailored to their needs. The team built on Syngenta’s positive experience with Lockton’s US team, particularly in managing their primary liability. They developed a bespoke approach for Syngenta’s Liability and D&O risks, demonstrating a deep understanding of Syngenta’s ownership structure. For Cyber, Lockton addressed the challenges Syngenta had faced and differentiated our approach by offering an alternative risk transfer option, which has proven successful with other clients. This comprehensive and bespoke approach helped Lockton stand out in the competitive process.
Client Result
Lockton successfully secured Syngenta’s global Liability and D&O insurance lines. Additionally winning the Cyber business, subject to final agreement on how Syngenta wishes to handle the risk. Whilst Property remained with the incumbent, our innovative tailored approach across other lines solidified our position as a trusted advisor on Syngenta’s risk management needs.
Property remained with the incumbent, our innovative tailored approach across other lines solidified our position as a trusted advisor on Syngenta’s risk management needs.
EFES CCI new business win - Food and Beverage
Client Challenge
The insured, a brewer and key Coca-Cola franchisee in the Middle East and Central Asia, had been severely affected by the invasion of Ukraine and its impact on the London Political Violence (PV) market.
A $400m limit at $300k had become a $100m limit at $1.2m in the space of a couple of years, somewhat driven by the collapse of PV facilities. The developing situation in Gaza had caused further concern ahead of renewal, and EFES CCI was already experiencing servicing challenges with its incumbent broker.
The broking team at Omni has a wealth of experience in the Turkish market. Following a number of wins with us on SRCC placements, they approached the Crisis Management team to discuss a potential placement strategy. After some initial scoping calls, this developed into a tender process.
Lockton Specialty Solution
The expiring policy was a straight $100m tower of full Political Violence. This meant larger locations in relatively benign territories on the schedule were being rated on the same basis as EFES CCI’s most exposed locations, notably in Iraq.
The solution was to create a primary layer which took the brunt of the rate. The largest business interruption value in Iraq informed this limit. We were then able to build out two excess options with a more appropriate rate. The option EFES selected restored the overall limit to a position where the majority of locations were covered on a per-location basis.
We also conducted a thorough wording review. The account had been moved between several different brokers in the recent past and come to be seen as something of a Frankenstein placement. Tightening the wording removed a number of ambiguities. We also reinstated coverage extensions that had been excluded previously: Miscellaneous Unnamed Locations and Unnamed Contingent Business Interruption.
Client Result
Having adopted the new structure and received a broadened policy more in line with its true requirements, the client secured twice the sum insured with an immaterial change in the premium payments.
Lockton/Omni were awarded the BOR.
The expiring policy was a straight USD 100m tower of full Political Violence. This meant larger locations in relatively benign territories on the schedule were being rated on the same basis as EFES CCI’s most exposed locations, notably in Iraq.
Sociedad Química y Minera de Chile (SQM) - Chemicals
Client Challenge
SQM tendered its Terminal Operators Liability (TOL) and Charterer’s Liability Insurance (CLI) policies. Lockton Specialty invested the time to ensure we secured these new appointments. Lockton Chile had already secured the client’s Stock Throughput placement via our London Cargo team. In light of this success, we recognized an opportunity to expand Lockton’s role.
The main challenge was that the client wanted to switch to separate policies for its two main business units, Nitrate and Lithium, previously combined, without any negative impact on premium spend.
Colleagues involved in London included Lockton Marine’s Mike McGratten, for the TOL, and Lockton PL Ferrari’s Freddie Hawke for the CLI. Those leading the placement from Lockton Chile were Paulina Acosta and Andres Barberena.
Lockton Specialty Solution
Benefitting from the already excellent trading relationship we have with Lockton Chile, who created the opportunity, we saw that SQM’s incumbent broker, Marsh, had not restructured the policy for many years. The team in London separately placed the CLI into the P&I Clubs and the TOL into a specialist Lloyd’s market. This provided both improved pricing and coverage of the products for SQM.
Client Result
We secured broader and cheaper coverage, with higher limits, combined with a specialist contract review service for SQM’s CLI brokers from the markets.
The team in London separately placed the CLI into the P&I Clubs and the TOL into a specialist Lloyd’s market. This provided both improved pricing and coverage of the products for SQM.
Westlawn Case Study - Oil and Gas
Client Challenge
Westlawn, a business founded in 2021 to pursue non-operating interests in offshore Gulf of Mexico assets, executed a series of acquisitions in 2023. Their energy insurance package, placed via Alesco and AJ Gallagher, was found to be uncompetitive. This presented an opportunity for us to offer a better alternative, given our familiarity with the asset base through LLOG, a Lockton client involved in Westlawn’s acquisitions.
Lockton Specialty Solution
Lockton’s Houston and London teams collaborated to analyze the existing energy package, uncovering inefficiencies in terms and pricing. The Lockton Specialty team then presented Westlawn with a more competitive rating and coverage structure. Additionally, Lockton’s Upstream Liability team in London structured a $275 million excess liability tower, while the Lockton Rio office provided insight on insurance requirements for Brazilian exposures following Westlawn’s acquisition activities. This collaborative approach demonstrated a deep understanding of the Gulf of Mexico offshore sector and Westlawn’s specific needs.
Client Result
Lockton’s efforts resulted in annual premium savings exceeding $1.4 million, a 40% reduction, along with significant coverage improvements. This success led to Lockton being appointed to manage two additional upstream energy risks for Westlawn’s sister companies, Ellipsis US Holdings LLC and Salamander Solutions, further solidifying the relationship and showcasing Lockton’s industry expertise.