As 2020 draws to a close and we reflect on the past 12 months, it goes without saying that the outbreak of Covid-19 has had a huge impact across the world, having an effect on lives and livelihoods in an unprecedented fashion. The effects of the outbreak of Covid-19 across UK businesses have been significant and, in some cases, catastrophic and we recognised the difficult situations many of our policyholders were facing and unfortunately still face today.

Folgate reacted quickly at the start of the pandemic by easing policyholder obligations and extending coverage for unoccupied premises for the duration of the first lockdown. The new Tier system in place will bring with it its’ own challenges and we would like to take this opportunity to reassure all of Folgate’s brokers and policyholders across the UK, that we will do everything we can to ensure that the required policy coverage remains in place for those that continue to be affected by Covid-19 and government-imposed restrictions.

I am therefore pleased to advise that we have decided to extend the coverage amendments implemented at the start of the second lockdown in November, originally due to expire on 2nd December, until further notice. Full details of the coverage amendments can be found here.

The insurance industry has suffered extensive losses as a result of the pandemic. These losses coupled with the stock market crash are likely to mean that insurers can no longer write business at soft market rates. The last hard market in the UK appeared in the aftermath of the September 11 Terrorist attacks almost 20 years ago and looks likely to change in 2021.

Will 2021 Be A Hard Market?

We re-launched Folgate into the UK insurance market in December 2018 and started writing business for UK insurance brokers effective from January 2019. Since our launch, we have seen steady growth across our book of business that focuses heavily on quality risk selection, solid broker relationships and sustainable, competitive pricing models. Our Underwriting philosophy has not changed.

The market has already seen a vast amount of capacity withdrawn from 2021. Some Lloyds’ Syndicates moving into run-off or withdrawing from the UK, Insurance companies cancelling binding authorities or reducing capacity, and various markets withdrawing from non-performing sectors. This is across all classes of business.

At Folgate, we have actively steered away from non-sustainable growth in preparation for a change in the marketplace, which now seems inevitable.

I would like to advise all our brokers that we will be here to support you in a more challenging marketplace next year and I am pleased to confirm our co-insurance partner panel from the 1st January 2021 as follows:

Product Lines Insurer Insurer Maximum Line Size
Property &
Folgate (50%) Axis Specialty Europe SE (50%) £10,000,000 any one location
Primary and Excess of Loss Employers, Public & Products Liability
Folgate (20%) Aspen Insurance UK Ltd (80%) £10,000,000 Employers Liability
£10,000,000 Public Liability
£10,000,000 Products Liability
Folgate (50%) International General Insurance Company Ltd (50%) £5,000,000
Excess Professional
Employers Liability,
Public & Products
Folgate (5%) Liberty Mutual Insurance Europe SE (95%) £5,000,000 Professional Indemnity
£25,000,000 Employers Liability
£25,000,000 Public Liability
£25,000,000 Products Liability
Bespoke Binding Authorities
& Scheme Business
Folgate (100%) £10,000,000 Property
£5,000,000 Professional Indemnity
£10,000,000 Employers Liability
£10,000,000 Public Liability
£10,000,000 Products Liability
Minimum participation generally 10% maximum 100%

Our extensions for Terrorism and Legal Expenses will continue to be underwritten by International General Insurance Company (UK) Ltd and DAS Legal Expenses Insurance Company Limited respectively.