Collateral agreements are often simply signed as they are often presented late in the procuring process with little time for review or the client is told by their broker/insurer that in order to bind their “program” the collateral agreement must be executed.
If collateral agreements are put into effect based on the above, the clients credit lines can be impaired over time due to the aggregation of the additional collateral needed on policy renewals. Further getting collateral back can be tedious or not enough.
The result of which often times, preventing the company from accepting a more competitive proposal on renewal or even being able to attract competitive quotes from other insurers. UIC has a proprietary system which has dramatically reduced or eliminated the above issues. We more than understand the issues surrounding collateral amounts and contractual obligations, and most importantly we have the solutions.