Aegon Scottish Equitable has redefined its catastrophe limits for group life schemes by looking at concentration of risk by building rather than postcode.
Through links with parent company Aegon, Aegon Scottish Equitable has switched its group life reinsurance to American sister company Transamerica Re. By reinsuring within the Aegon group it has been able to increase catastrophe cover in areas with high concentrations such as the City of London and Canary Wharf.
Catastrophe cover has historically been limited to individual postcode areas. In line with much of the industry, Aegon found that by limiting the amount of liability in each postcode location to GBP100 million that capacity was quickly consumed in densely populated areas of business.
The maximum limit of catastrophe cover will remain at GBP100 million, but will now apply to specific buildings rather than postcodes.
Simon Bailey, employee benefits head of marketing at Aegon Scottish Equitable, said: By offering clients up to GBP100 million of cover within a single building rather than postcode, we can free up significant capacity. The benefits we can bring to the UK market through our links with the wider Aegon Group should really make a difference in a market that is crying out for additional cover.