Press release
AEGON Scottish Equitable increases catastrophe cover limits for group schemes
28 May 2008AEGON Scottish Equitable has redefined its catastrophe limits for Group Life schemes by looking at concentration of risk by building rather than postcode. AEGON Scottish Equitable has linked with American sister company Transamerica Re (TIRI), 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 £100 million (for a single event) that capacity was quickly consumed in densely populated areas of business.
The maximum limit of catastrophe cover will remain at £100 million, but will now apply to specific buildings rather than postcodes.
Simon Bailey, Employee Benefits Head of Marketing at AEGON Scottish Equitable says: “By offering clients up to £100 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. We now perhaps provide a real option for those that thought they would either be forced into splitting risk or having to seek additional cover through the Lloyds market at additional cost.”
Bailey continues: “Employers will benefit from this extension of cover as it can prevent the need to split cover between several providers and thereby reduce the administrative effort. As it is also part of the insurance premium it will also likely be more cost effective than additional cover provided by the Lloyds market.”
Notes to editors
- AEGON has assets under administration of £52.3 billion and employs around 4,000 staff. AEGON is part of the AEGON Group, which is one of the world’s largest listed insurers and has assets around Euro 359bn (£250 billion).
Jon Atkins 
