Horses for programs: Markel chief on equine insurance coverage

“Our more specialist areas include equine and livestock,” mentioned Andrew McMellin (pictured above). “It’s a pretty small market worldwide, frankly.”

McMellin is Markel’s London-based managing director for wholesale worldwide. According to its web site, the various Markel Group contains an insurance coverage division but additionally constructing provides and bakery tools companies. The US-headquartered firm has about 20,000 workers the world over.

The agency reported gross premium volumes of greater than US$10 billion for 2023 so equine and livestock insurance coverage shouldn’t be a big a part of the operation.

“It’s probably our smallest area with about US$60 million worth of business,” mentioned McMellin.

Race-horse homeowners, stud farms and zoos

However, Markel’s providing on this sector nonetheless has a world footprint. Race-horse homeowners, stud farms and zoos throughout England, Europe, the US, Canada, New Zealand and Australia are a number of the agency’s prospects and never just for insurance coverage coverages.

“We’re doing bloodstock and that can be anything from Arabian thoroughbreds through to your pony clubs,” mentioned McMellin. “We have a livestock business in the US which is looking at, for example, cattle and chicken farms and introducing animal pharmaceutical products and trying to sell direct to farmers.”

Mortality danger covers for horses and livestock

Insurance Business requested what kind of coverages a horse proprietor wants.

“It can be for mortality risk, so if the horse dies,” mentioned McMellin. “Stud farms can get coverage for their risks too so studs would obviously be covering the foals.”

He mentioned there’s additionally a component of legal responsibility insurance coverage in these choices.

“If you run a pony club and you’ve got visitors coming in to ride on the ponies, they can get kicked off the pony and injure themselves, so this provides liability cover,” mentioned McMellin.

He estimated that Markel has an equine market share centered on thoroughbreds and mortality danger of about 30%.

Chicken farms and hurricanes

Livestock insurance coverage choices, he mentioned, additionally cowl the mortality of the animals.

“For example, if they get diseases on chicken farms, or if a chicken farm gets hit by hurricanes or storms, that sort of thing,” he mentioned.

Expensive horses have wealthy homeowners

One problem, he mentioned, might be convincing the horse homeowners to purchase insurance coverage.

“A lot of horse owners don’t buy the cover because they don’t perceive it [mortality] to be a particular risk,” mentioned McMellin.

Other thoroughbred horse homeowners, he mentioned, are so rich they don’t see the necessity.

“When you get up into the Arabian thoroughbreds, they’re just so rich they don’t need the cover, frankly,” mentioned McMellin.

Markel additionally invests in some very costly horses.

“We subscribe to some of the big valued horses,” he mentioned. “We’ve got a small share of a horse that is worth, I think, US$50 to US$60 million.”

APAC growth plans

McMellin mentioned his agency has huge Asia-Pacific (APAC) growth plans. The area’s enterprise, he mentioned, is presently price about US$140 million to Markel. The goal is to transform that to US$500 million in the course of the subsequent 5 years.

“That’s by growing out all our key locations in Asia,” mentioned McMellin. “For us, that starts in Dubai, runs through Mumbai in India, goes through Kuala Lumpur in Malaysia, Hong Kong, Shanghai, Singapore and now we’ve added Melbourne, Sydney and Brisbane.”

Taking the long-term view

In September, Markel’s boots-on-the-ground presence in Australia started gathering actual steam with the opening of places of work in Sydney, Melbourne and Brisbane.

Earlier this month, the agency launched an expert indemnity (PI) providing for Australia. According to a media launch, the coverages are specializing in skilled and monetary dangers in areas corresponding to renewable power.

Rory Morison, Markel International’s new managing director in Australia, mentioned his agency takes a really long-term view.

“Firstly, we wanted to show intent because one of the big questions being asked is, ‘are you serious about this or not?’” mentioned Melbourne-based Morison. “We also wanted to be crystal clear: ‘yes, we’re here for the long term.’”

“The long horizon that Markel as a business looks at for success, is to be a forever company,” he mentioned.

Are you a dealer concerned within the equine and livestock sectors? What are your insurance coverage challenges? Please inform us under