Major insurance companies Chubb, Zurich North America, and National Indemnity have launched a new excess casualty insurance facility designed for large national and multinational corporations. The facility provides up to $100 million in lead excess capacity on a claims-made basis and will be available in the United States starting July 1, 2025.
Key Features of the Facility
The new insurance facility is a response to the challenging litigation environment and capacity constraints faced by businesses. It offers several key features, including:
- Single access point through either Chubb or Zurich
- Aligned coverage terms
- Administrative efficiencies
- Coordinated claims handling
The program is underwritten by Chubb and Zurich, with support from National Indemnity Company, an affiliate of Berkshire Hathaway. According to John Keogh, president and chief operating officer of Chubb Group, “The litigation environment for large companies in the US is increasingly hostile, and business as usual is not the answer.” He added that this initiative represents a new approach to insurance protection and claims capability for clients who are often targets of legal abuse.
Zurich North America CEO Kristof Terryn noted that businesses have been dealing with reduced capacity and rising coverage costs. “This facility creates a sustainable answer to the litigation environment, whose volatility has continued to frustrate our customers, while helping to stabilize capacity in the excess casualty market,” Terryn explained. The collaboration between Chubb, Zurich, and National Indemnity leverages their combined knowledge, financial strength, and staying power to provide a much-needed solution for their customers.
Market Context
The launch of this facility comes at a time when the US casualty insurance market is experiencing upward pressure on rates, particularly in excess and umbrella liability lines. Insurers are adjusting their pricing and reducing per-risk capacity in response to legal trends, large jury verdicts, and other loss developments. The new facility is positioned as a streamlined option for brokers, agents, and policyholders, addressing the current market challenges.
Market outlooks suggest that while the broader property and casualty sector has seen improvements in premium growth and underwriting results, the casualty market is expected to remain under pressure due to continued legal and economic uncertainty. Rate increases and capacity discipline are likely to continue in the near term as carriers focus on maintaining underwriting performance and responding to long-term risk exposures.
