MIC’s Underwriting Appetite

Our MiIncome Rent & Deposit Protection underwriting appetite enables us to offer protection designed to cover loss of rental income, damage deposit protection, and associated loss mitigation expenses for landlords. These include income earned by a landlord from rented properties, expenses due to malicious tenant property damage (damage deposit protection), and tenant eviction legal fees. We deliver our solutions through programs with local distribution partners, commercial customers and local insurers.

Bridging A Protection Gap

The traditional protection contracts fail to address the emerging needs of the digital, sharing and gig economy. We are here to fill the gap in the market by addressing specific circumstances that can affect a landlord’s income. Our products can also enable landlords to reduce the risk of unplanned expenses, while enabling them to waive damage deposit requirements on tenants, instead, relying on our damage deposit protection, making their properties more attractive and affordable for tenants.

What Can Be Covered?

We do not have pre-determined triggers or perils outlined in our underwriting appetite for this type of business. Instead, we work with partners and insurers, to tailor the protection to the nature of the work of their target market. For example, we can cover loss of income for when a tenant defaults on payments or causes damage to the rented property where a damage deposit was waived relying instead on our deposit protection to cover property damage. The cause of the loss must be beyond the control of the landlord. Typical coverage can include:

• Loss of rental income as a result of a tenant defaulting on rental payments;
• Loss of rental income as a result of property vacancy, due to tenant abandonment without notice;
• Expenses resulting from property damage or loss, vandalism, and/or theft that is the responsibility of  a tenant in lieu of a damage deposit; and
• Legal fees incurred during eviction of a tenant.

Policy Limits We Can Offer

• MIC can offer claims limit of:
  • 12 months’ rent (up to USD $60,000) per covered landlord/property;
  • up to USD $10,000 per covered landlord/property for property damage and vandalism;
  • up to USD $2,000 per lease agreement for eviction legal fees.
• These limits can be adjusted up or down depending on the demographics being covered, coverage required, scale of the program, and MIC’s underwriting appetite.
• We work with our partners, brokers, and insurers to tailor our limits specifically to each program.

Data Requirements

• MIC requires that data on program enrolments, premiums, and claims be provided by partners on a monthly basis with insurers/brokers being able to provide data using Application Programming Interface (API) within 90 days of a program incepting.
• MIC will work with your partners, brokers, and insurers to put in place API connections for the seamless and real-time sharing of data between parties on the program.

Program Changes

• MIC has the ability, working with the partner, broker, and insurer to review program pricing, terms, and conditions of the program (on new risks that are covered by the program) if the loss ratio (i.e. claims/premium) is above 65%.

Minimum Annual Program Premium

• MIC has a minimum annual premium on each program of 240,000 USD / CAD / GBP / EUR.

What Is Typically Not Covered?

We work with our partners and insurers to create products that add value to all parties, with typical coverage exclusions being:

• Any property damage other than damage that is the responsibility of the tenant;
• Failure of the landlord to appropriately screen a tenant’s’ background as per agreed guidelines;
• Any disciplinary or regulatory investigation, prosecution costs, fines, penalties, punitive, exemplary, aggravated or liquidated damages, other than eviction related legal fees;
• Taxes of debts;
• Any fraud or misrepresentation by the landlord;
• Losses due to war, terrorism, strikes, or civil unrest;
• Government-imposed moratorium, ban or restriction on the landlord’s ability to collect rent;
• Losses due to nuclear, chemical, biological, radiation, pollution, and pandemic events; and
• Losses due to the landlord’s financial insolvency.

MIC Risk Carrying Entities

• MIC Global Syndicate 5183 is a Lloyd’s of London Syndicate managed by Asta Managing Agency Limited and can do business in territories where Lloyd’s is licensed to write (re)insurance.
• Micro Insurance Company regulated by the Anguilla Financial Services Commission.

This is an indicative product summary. Policy triggers, coverage, and exclusions will need to be tailored for each specific opportunity.

MicroEnsure (UK) Limited is an appointed representative of Asta Managing Agency Ltd which is Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Micro Insurance Company is regulated and authorised by the Anguilla Financial Services Commission.

Please note that any information in this product summary is for general information purposes only and is targeted at large sophisticated (re)insurance buyers, regulated (re)insurance distributors, and regulated (re)insurers.

Our products are subject to eligibility requirements, exclusions, limitations, and other terms and conditions. Please refer to your policy documentation for full details.

The content of this page does not constitute advice or a recommendation to purchase any product. You should seek professional advice before making any decisions based on the information provided. STP Group Holdings LLC, MicroEnsure (UK) Limited, Asta Managing Agency Limited, Micro Insurance Company, and their subsidiary and affiliated companies are not responsible for any losses that may arise from reliance on the information provided in this product summary.