Hub International Limited (NYSE:HBG) and (TSX:HBG) announced today that it has enhanced its exclusive Embassy Program, providing property and casualty insurance to embassies, consulates and missions to the United Nations in Washington DC and New York City. Hub International also announced that it has partnered with Washington DC-based Clements International to jointly provide auto and property/casualty insurance to embassies, consulates and missions.
Enhancements to the Hub International program include: (1) lower minimum premium so that embassies, consulates and missions with property values under $1 million -- revised from $2.5 million -- are now eligible and (2) expanded terrorism coverage to now include liability. Kaye Insurance Associates, the NY-based retail unit of Hub International, crafted the Embassy Program to meet the growing need for this coverage, particularly in New York City, following the 9/11 terrorist attacks. Hub International remains the exclusive U.S. provider of these services, arranged through international insurers. Its new partnership with Clements International, a leading provider of global insurance solutions to the international community, not only expands this program into Washington DC but also brings Clements' expertise in auto coverage to New York City-based embassies, consulates and missions.
Kaye estimates that as of March 2004, a third of New York's embassies and missions did not have any insurance coverage in place and about 50% were underinsured due to the unavailability or prohibitory cost of the coverages.
"We believe the enhancements to our program will allow additional embassies, consulates and UN missions to get the type of coverage they were unable to obtain or renew through other insurers," said Ken Schreiber, Senior Vice President of Sales and Marketing at Kaye Insurance Associates. "As we get closer to the sunset date for the Terrorism Risk Insurance Act (TRIA), many insurers are becoming reluctant to write coverage for terrorism, but we believe our exclusive program efficiently and successfully addresses this growing need."
Kaye has worked with over 20 embassies in New York City and expects continued growth due to the enhancements and expansion into Washington DC. The partnership with Clements will allow both firms to service additional embassies, consulates and missions that are currently without terrorism and/or auto coverage.
"We're excited by the partnership with Hub International and the possibility of offering this ground-breaking policy to our nation's embassies," said Jon Clements, President and CEO of Clements International. "The partnership crafts a key competitive advantage for both firms in our core competencies to offer coverage to embassies and missions that have been shut out of the market for a long time. The response so far has been tremendous."
Headquartered in Chicago, IL, Hub International is a leading North American insurance brokerage that provides a broad array of property and casualty, life and health, employee benefits, investment and risk management products and services through offices located in the United States and Canada.
Headquartered in Washington DC, Clements International remains a leading provider of global insurance solutions to the international community. In addition to providing property and casualty insurance to embassies, NGOs and foreign and domestic organizations, Clements International also offers auto, property and health insurance to individuals.