Travel insurance broker Rock Insurance has welcomed the news that New Zealand-based underwriter CBL has had its financial rating upgraded.
The firm entered travel in 2014 when Nevis-based Northern and Western had its licence suspended following a failed property development in London.
At the time there was concern about the viability of scheduled airline and supplier failure cover being supplied to the industry.
However the move by credit ratings agency A.M. Best to upgrade CBL Insurance’s financial strength to A- (excellent) from B++ (good) and parent CBL Insurance Limited’s credit rating to A- from BBB is seen as good news for the industry.
Antony Martin, Rock Insurance managing director, said: “From a Rock perspective this is excellent news as it means that our travel partners can have even more confidence when using these products.
“We have seen a significant increase in the number of businesses using insurance to protect themselves against supplier failure and along with flexibility, the insurer rating is key part of this.
“Scheduled airline or supplier failure claims can easily run into thousands or even millions of pounds so it’s important that our insurance partners have the resources to pay them. An A rating is a strong endorsement from the rating agency that CBL has the financial resources to do that.”
Affirma Insurance, a trading name of MGA Cover Services, with which Rock and Advantage Financial Services formed a joint-management team in 2014 said the CBL rating upgrade underlined a strong performance so far in 2016.
Affirma said in a statement: “The rating actions reflect significant improvement in CBL’s capital position and risk adjusted capitalisation in 2015, due to continued strong earnings and additional capital contributions from its parent company.
“In addition, the initial public offering of its ultimate parent company, CBL Corporation Limited, which occurred in October 2015, has vastly improved the insurance group’s financial flexibility.”
Affirma has been working with CBL Insurance since 2014 developing an insurance product portfolio primarily aimed at supporting the travel industry UK but now with new partnerships set to be announced in Europe.
CBL has been established for 35 years and works globally offering solutions to complex insurance problems including financial failure, supplier failure and scheduled airline failure developed and distributed by Affirma Insurance.
John Buckingham, chairman of Affirma Insurance, said: “This significant progress from CBL means that we can continue to support our business partners with a very fast and flexible service that is now underpinned by two A rated insurers’.
“By offering the support of two heavy weight insurers we are able to compete in the growing supplier failure insurance market and ensure that our business partners have a choice. This is an unrivalled position.'
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