Price Forbes has launched its cross-class follow facility Lectio in Bermuda, initially offering a Bermuda property line with estimated premium scope of around US$85 million.
The facility will allow Price Forbes Bermuda to automatically follow pre-approved lead insurers across Bermudian property placements, extending Lectio's total premium scope to around US$1.3 billion.
Follow facilities streamline the traditional Lloyd's placement process, where brokers must secure capacity from multiple underwriters after a lead insurer prices a risk and takes an initial line of 15% to 20%.
According to AEGIS London, up to 60% of Lloyd's market placements could be written on an automated follow basis by the end of the next decade. For brokers and clients, the benefit is speed and certainty – follow capacity is virtually guaranteed once the lead line is secured.
Lectio is backed by a panel of Lloyd's syndicates, though Price Forbes has not publicly disclosed specific capacity provider names. According to the company, the facility automatically follows placements led by approved Lloyd's syndicates, providing streamlined access to capacity for brokers and clients.
The facility was initially backed by three carriers at its April 2021 launch, when it offered cargo, specie, financial products, healthcare, and marine insurance with premium scope of approximately US$350 million.
Since then, Lectio has expanded to include aviation, cargo/stock throughput, cyber, onshore and offshore energy, financial institutions, marine, worldwide property, power, and construction/builders' risk.
The Bermuda launch aligns with broader market trends identified by Aon's Global Insurance Market Insights report, which found Bermuda and London to be key sources of new property market capacity.
According to the report, this influx of capacity has contributed to rate reductions for well-managed risks across the US, UK, Europe, and Australia.
Price Forbes Bermuda, launched in 2019, describes itself as the island's leading independent broker. The business operates three divisions covering property, casualty/liability, and reinsurance.
Carrie Kelley (pictured above), CEO of Price Forbes Bermuda, said the launch marks a milestone for the company's Bermuda operations.
"The exclusive follow facility will provide access to meaningful capacity for our clients, underlining our continued commitment to deliver pioneering solutions to the Bermuda market," Kelley said.
Dan Walsh, chief underwriting officer for Lectio, noted that Bermuda represents a key growth area for Price Forbes.
"Offering Lectio capacity behind key property leaders on the island signals our intent to grow the product across key geographies and provide significant value, flexibility and choice to our clients," Walsh said.
Walsh has previously described the facility's expansion as reflecting "the confidence placed in it by best in class insurers."
