Marsh Risk has launched a new Bermuda-based insurance facility aimed at addressing growing capacity constraints and complexity in the US casualty market, as clients continue to face heightened liability exposures and more challenging placement conditions.
The new facility, known as BX1, is designed to provide US-based clients with a streamlined excess casualty solution, offering a unified block of $50 million in capacity. The launch reflects ongoing efforts by brokers and insurers to develop alternative structures that can deliver both coverage certainty and operational efficiency in a market characterized by tightening terms and rising claims severity.
BX1 brings together capacity from multiple Bermuda insurers - Ascot, Markel, Ark, and Sompo - under a single contract issued through Marsh’s Bermuda platform. By consolidating participating carriers into one structure, the facility is intended to simplify the placement process and reduce administrative burdens for clients. It also introduces a single claims decision-maker, which Marsh said will help streamline claims handling and lower associated costs.
The facility is built on Marsh’s proprietary XSellence excess casualty form, providing follow-form coverage across a client’s broader casualty program. Notably, the policy includes affirmative coverage for punitive damages, a feature that is often restricted or excluded in traditional casualty placements. This addition is expected to be particularly relevant for clients operating in jurisdictions where punitive damages exposures are significant.
BX1 is structured to offer flexibility in attachment points, starting as low as $10 million and extending higher depending on client needs. This allows the facility to be deployed across a wide range of industries and complex risk profiles, particularly for large-scale liability programs requiring layered excess coverage.
The launch comes amid continued pressure in the US casualty insurance market, where social inflation, large jury awards, and evolving legal risks have driven increased demand for excess liability protection. Insureds are increasingly seeking solutions that not only provide sufficient capacity but also reduce uncertainty around placement and claims outcomes.
Marsh said the facility is designed to address these concerns by combining substantial capacity with clearer policy terms and a more efficient operating structure.
The introduction of BX1 follows a broader trend of innovation in the excess casualty space, as market participants explore new ways to deliver capacity, improve transparency, and manage risk more effectively for large corporate clients.
