MWA Special Risks approached us on behalf of a leading UK recycler, specialising in recycling ferrous and non-ferrous metals as well as vehicles that have reached the end of their life.
This is a vital service and key to building the sustainable, circular economy that the future demands. Not only this, but the business in question is also committed to sustainability in its own operations with a bold plan in place to be net zero by 2035.
Despite the high standards, the business found itself struggling to get the cover it needed. As with so many businesses in the recycling industry, and other industries, it was being underserved by the wider insurance sector. This was compounded by the event of a fire at a site adjacent to a facility. While not the fault of our insured, this incident only served to increase the risk profile of the business in the eyes of traditional insurers.
This posed a significant threat to business continuity, compounded by the incumbent insurer failing to offer renewal terms and failing to provide a reason for this decision. The business approached MWA to help them search the market for an insurance solution.
The Challenge
Following the sudden withdrawal of terms by an incumbent insurer, and with reluctance from the wider industry, this business faced a significant risk – financial and regulatory – so the challenge for MWA was to find suitable cover, and quickly.
The deal was a complex one for any insurer covering plant, gross profit and a variety of machinery in a high-risk industry. Alongside this, the fire at a neighbouring site needed to be considered as did long-term commitments to sustainability, key for regulatory compliance.
While the rest of the industry may have turned this business down, Aspect was built with the express aim of doing things differently and running towards the risk that other insurers avoid.
Following a meeting on-site in February, including a survey of the site itself and a meeting with the business owners, our team were able to see business activities first-hand. This allowed us to develop a nuanced risk profile, something which other insurers had failed to do.
Several options were presented to MWA at different loss limit options and a solution was found meaning business could continue, as could the business’s journey toward net zero.
Tom Seymour, Senior Underwriter at Aspect said
“This is a great business with a commitment to sustainability and decarbonisation that mirrors the values of our own team at Aspect. The treatment of this business, which is central to the UK’s circular economy, by the wider insurance industry was incredibly disappointing.”
“At Aspect however, we were able to visit the site and get to know the business and the team on a deeper level. We knew that, given the attention they deserved, a solution would be found, and indeed a solution was found.”
Michael Ward, MD MWA Special Risks said
“We would like to express our sincere appreciation for the support provided by Aspect in helping us secure our recent win. Tom’s participation in the initial client meeting was invaluable, as it allowed us to have the expertise of a senior underwriter on-site, giving us a clear competitive advantage over other brokers.”
“The flexibility and adaptability in the underwriting approach enabled us to present the client with a variety of options. This allowed them to choose a policy that not only met their need for comprehensive coverage but also fit within their budget.”
“We view this as the beginning of what we hope will be a fruitful and ongoing collaboration with Aspect in the future.”