Willis and Markel’s new $200 million “Undercover” facility merges coverage for cargo, political violence, war on land, terrorism, and confiscation under a single structure, raising new considerations for reinsurers on how multi-peril cargo policies may impact treaty wordings and event aggregation clauses.
Undercover allows cargo owners to select specific coverage sections based on their operational requirements. By consolidating multiple risk exposures into a single facility, the product is structured to limit coverage gaps and reduce the potential for disputes over the cause or classification of losses.
According to the developers, Undercover removes the need to determine motivation behind an event in order to trigger coverage. This approach may have implications for reinsurers regarding how such claims are interpreted under existing facultative or treaty arrangements.
Ben Abraham, global CEO of Willis Marine, said cargo owners are dealing with fast-moving political risks that introduce uncertainty.
“This innovative solution is the first that offers a clear, comprehensive approach to cover, offering the maximum certainty exactly when it’s needed and when the worst happens,” said Abraham.
Cargo insurance is frequently written on a global basis, with premiums tied to changing national risk ratings. Undercover offers cost certainty by absorbing geopolitical shifts within a unified framework. The facility was designed to address exposures faced by cargo owners as they move goods through regions affected by political instability or violence.
“The transportation of goods is highly sensitive to geopolitical uncertainty, which has the potential to disrupt trade routes, increase operating costs and put pressure on the resilience of global supply chains,” said Brook Styles, head of cargo at Markel International.
“We’re therefore pleased to have launched this new product, which provides support to cargo owners by helping them navigate today’s complex geopolitical risk environment with added confidence, clarity and simplicity,” he said.
Willis began operating as a marine broker in 1828 and now provides cargo risk services through more than 200 specialists working within an industry-specific practice. The company offers solutions tied to data-driven insights across the areas of people, risk, and capital in over 140 countries.
Will the merging of multiple perils under a single cargo facility reshape reinsurance treaty terms or event definitions? Share your perspective in the comments.
