Industrial Insurance (Industrieversicherung)
Industrial insurance refers to the segment of property and liability insurance that individually underwrites the complex risks of industrial and large corporate clients, frequently involving brokers and co-insurance consortia.
Concept
Industrial insurance refers to the market segment in which insurers develop tailored coverage concepts for the complex risks of industrial and large corporate clients. Unlike standardized mass-market (retail) insurance, risk assessment, pricing, and contract design are performed individually based on a detailed technical and business risk analysis.
Typical Lines
Central lines within industrial insurance include property and business interruption insurance (including fire, machinery, and electronics insurance), general and product liability insurance, engineering lines (erection all risks, construction all risks, and machinery breakdown insurance), and increasingly cyber and D&O insurance. Because of the high sums insured, a large share of the business is placed through co-insurance consortia or extensive reinsurance programs.
Distribution and Market Structure
Distribution in industrial insurance occurs almost exclusively through specialized industrial insurance brokers, who act as the link between the policyholder company and the (co-)insurance market; international corporations also frequently rely on global insurance programs with a lead insurer and local admitted policies (fronting).