Bermuda Excess Liability Insurance
In the 1980s, there was no such insurance company that could provide coverage for excess liability. This was an increasing requirement from the large corporations of the US. So in 1985, ACE Limited was established in Bermuda to provide such coverage.
There were 34 U.S companies who represented the board and had shareholding in ACE. They contributed the initial capital of $250 million. ACE initially started offering only excess liability coverage, however subsequently the coverage for officers and directors were also added in its offer.
As per the company constitution of ACE, initially it could offer the excess liability coverage only to its share holding companies. So in a way it was a captive insurance for excess liability. However, later the portfolio was extended to cover other companies as well.
In 1986, another excess liability insurance company called XL Capital Ltd. was formed in Bermuda based on the same principles as ACE. XL offered similar coverages at lower attachment points than ACE.
Also the same year, Corporate Officers and Directors Assurance Ltd. (CODA) was established in Bermuda to provide a much wider range of coverage for directors and officers of large corporations.
The global broker Johnson & Higgins had created CODA along with some of its clients formed this insurance company because of lack of such coverage at the time. In the year 1987, ACE assumed management of CODA and went on to acquire the same in the year 1993.
Chubb Bermuda is another major provider of high-level excess liability, professional and property insurance. Its operations in Bermuda offer a wide spectrum of insurance and reinsurance products to a wide range of clientele worldwide.
In the beginning of the year 2016, ACE Limited completed the acquisition of Chubb and became the world’s largest publicly traded property/casualty insurance company. It adopted the Chubb name globally and commenced business operations under the new banner.
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