SiX Executive Risk Programs
Vanbridge’s SiX platform was created on the belief that the insurance purchasing process doesn’t need to be so complicated or inefficient. SiX represents a better way for private equity and venture capital backed companies to procure their Executive Risk insurance policies.
As a firm that works primarily with members of the alternative asset management community, we understand the frustrations that occur in a typical arrangement. Private equity and venture capital firms want to make sure that their portfolio companies have appropriate protection, but don’t want to spend time evaluating all of the policies across their portfolio. Portfolio companies want to secure good coverage at a fair price. They want to benefit from the potential buying power of the Sponsor, but they also want to work with a broker that they know and trust. Brokers want to provide their clients with great coverage and service. They don’t want to spend all of their time negotiating esoteric coverage terms across multiple insurance carriers.
At Vanbridge, we worked with our 100+ participating private equity and venture capital firms to develop risk solutions that make sense for their businesses. We listened to their frustrations and developed a more efficient, streamlined approach to D&O insurance purchasing.
Historically, the D&O insurance market has resisted standardization of its policy forms. With the exception of very large corporations and sophisticated financial institutions, the ideal D&O contract for companies within broad categories (e.g., public, private, public debt; healthcare, energy, technology industries) is essentially the same. Working with leading law firm D&O practice groups, Vanbridge has developed a common manuscript form for portfolio company D&O insurance that has been accepted by four A-rated insurance carriers.
The SiX platform has performed extremely well over the last six years and is currently providing coverage to over 1,000 portfolio companies backed by over 120 different PE/VC funds. Some of the program’s key benefits and features include:
Leading Insurers – The markets currently participating in the program are Arch, Axis, Chubb, Beazley and Ironshore.
Common Form – Negotiated in conjunction with leading law firm’s D&O practice groups, the common form provides for the breadth of coverage that leading private equity and venture capital firms seek. The form is renegotiated as necessary following a full legal review to ensure that it provides best-in-class coverage. With a common form, consistency of coverage is a given. When policies are purchased through the SiX program, you only need to know price, retention and added terms (if any) because everything else is the same.
Open Brokerage – SiX is broker-neutral. This means that any broker can access the program, provided that your private equity or venture capital firm supports the program.
Administration – Vanbridge is the program manager. Your retail insurance broker accesses the program, just as they would go directly to a carrier.
Risk Aggregation – Historically, private equity and venture capital firms have found it difficult to aggregate their portfolio. SiX makes it easy by aggregating on behalf of the industry; not just a single fund.
Added Leverage – If a participating insurer does not provide adequate service or claims response, the insurer will be removed from the program. This gives Vanbridge direct control over tens of millions of profitable insurance premiums.
Better Pricing – The Vanbridge program is a more efficient manner to procure coverage, and the savings created by that efficiency will be passed on to the portfolio companies in the form of lower premiums.
How Does SiX Work?
You and your broker review the common form.
Submit Paper Form
At renewal time, Vanbridge will work with the portfolio company’s retail broker to submit transactions to the participating insurers.
The participating insurers will promptly reply with price quotes, which your portfolio company’s retail broker can compare in the open market.