Premium credits approved for 2021–2022
We are pleased to report the AEGIS Board of Directors has approved the following details of the 2021–2022 premium credit program:
- Excess liability credits = $30.0 million
- Directors & officers credits = $18.0 million
- Property credits = $8.0 million
- Renewable energy credits = $1.0 million
- Cyber credits = $1.0 million
- Workers’ compensation credits = $1.0 million
- Loyalty level one credits (20%) = $9.5 million
- Loyalty level two credits (40%) = $7.5 million
The total credits declared are $76 million versus $67 million last year. The excess liability and property credits were increased and the D&O credits were decreased to better reflect the premium growth trends for those products. A renewable energy credit was declared for the first time in recognition of the growth of that product. In addition, $1 million in credits were declared for coverage written by AEGIS London.
In addition, we continued the popular member loyalty credit program for those members who buy four or five of the eight eligible AEGIS products. The level one credit, for those members who purchase four products, is equal to 20% of the total premium credits. The level two credit, for those who purchase five products, is equal to 40% of the total premium credits. The member loyalty credits are paid in the form of a check. The premium credits for individual products are paid in the form of a credit against premiums for future policy renewals.
In 2020, 34% of our members took advantage of the loyalty credit program, up from 26% in 2019. We are pleased to recognize the loyalty of our members with these additional credits and look forward to even higher levels of participation in the future.
These credit programs set AEGIS apart from the commercial market because they allow members to share in the positive financial results of the company. We have declared $2.09 billion in premium credits to eligible policyholders since the inception of these programs.
The credit letters for individual products and the member loyalty credits will be e-mailed to members and their brokers from the AEGIScredits@aegislimited.com address in mid-June. If you have any questions, please contact George Keefe, Senior Vice President – Member Relations by e-mail or by phone at 201.508.2797. Additional details about the AEGIS premium credit program are posted on our website.
New AEGIS property policy effective January 1, 2022
We have refreshed our property form with the goal of clarifying the coverage. Effective January 1, 2022, the new form will be required on all new and renewal policies with 50% or more AEGIS and Consortium partner participation.
We are committed to endorse the new form so that members can maintain the coverage they currently have on their existing policy, subject to underwriting and pricing for the desired coverage. Limits up to $500 million are available through our Property Consortium partners. Coverage features include all risk coverage for operational and construction, machinery breakdown, generation from all fuel sources, earthquake, windstorm & flood, business interruption/delay in start-up (DSU), hot testing, and pollution cleanup and removal. The new AEGIS property policy is posted in the password-protected area of the website.
If you have any questions, please contact George Keefe, Senior Vice President – Member Relations by e-mail or phone at 201.508.2797; Gary Ladman, Vice President & Senior Underwriting Officer by e-mail or phone at 201.508.2802; or Bob Finelli, Vice President & Senior Underwriting Officer by e-mail or phone at 201.508.2657.
Steam Turbine Overspeed Protection Systems White Paper
Although a steam turbine overspeed event is rare, it can be catastrophic, and can lead to significant property damage and extremely high repair costs. AEGIS Loss Control considers a steam turbine centrifugal explosion to be the maximum forseeable power plant machinery loss event.
Fortunately, these events can be prevented with routine inspections, appropriate system maintenance and periodic testing. You can read about our testing cycle recommendations in the most recent issue of Quick Tips and the Overspeed Protection Systems white paper, which are posted on our website.
For more information on steam turbine overspeed protection systems, please contact Gregg Basnight, National Machinery Manager by e-mail or phone at 201.508.2730, Josh Fleischer, Vice President, Loss Control Property Operations by e-mail or phone at 201.508.2637, or your designated AEGIS Loss Control Senior Machinery Professional.