I would suggest that BKI's own retention is probably not significant. I would suggest that a significant part of the 30% they indicate is to their own account will be reinsured out under their reinsurance treaties. (I would suspect that with a 21% line QBE is probably carry more capacity on this risk than any of the other insurers or reinsurers involved).
2. Assuming that I am looking at the correct page in the Walltech brochure, it appears that the sandwich paneling is the type which contains polyurethane or polystyrene foam which is flammable and which is of considerable concern to insurers.
3. While the loss history for this class of risk may have been good, the problem is that in the event of a fire the loss will be significant. Any smoke in these "clean rooms" will mean that the entire clean room will be affected and will need to be entirely replaced.
The fire protection at these premises is not as good as we would like to see in a business like this with sandwich paneling used in the building construction.
4. As discussed yesterday, there is little point in comparing this risk with "Factory 2". "Factory 2" is a more modern building and it may have a sprinkler system or it may have better fire protection than this factory and it may not have the same sandwich paneling.
(Just because Factory 2 has a lower rate does not mean that the rate we want on this factory is not correct).
Factory 2 has a significantly lower sum insured so there is less risk.
5. I have already said that we would agree to ISR coverage on this risk.
6. Below is an extract from the Pr