Purbeck strengthens commitment to SMEs with launch of Purbeck Re
Purbeck Insurance Services, the UK’s only specialist provider of Personal Guarantee Insurance, has launched Purbeck Reinsurance Limited, a new captive insurer. The development marks a significant step in the company’s long-term commitment to support UK SME owners and directors. To date, Purbeck has protected over 5000 directors on £700m of Personal Guarantee commitments.
Prior to Purbeck Re, all claims were paid by Markel, Purbeck’s capacity provider. With the launch of Purbeck Reinsurance Limited, Purbeck is now directly “on risk” for a portion of claims arising from the personal guarantee insurance policies it provides to SME directors. The move represents a strategic evolution for Purbeck, aligning its financial interests even more closely with the success and resilience of its clients’ businesses.
Todd Davison, managing director of Purbeck Insurance Services, said: “Personal guarantees remain one of the most significant – and least understood – risks facing SME owners. By investing our own capital and taking a direct share of the risk, we are reinforcing our role as a long-term partner to UK entrepreneurs. When our clients succeed, we succeed – and when challenges arise, we step in to help prevent failure. We’re immensely proud of the fact that 75% percent of businesses we support in financial distress trade out successfully rather than fail.
“Our mission from day one has been to build a sustainable model that reflects our belief in responsible lending, informed risk-taking and better outcomes for directors. Having capital at risk sharpens our focus on underwriting quality and claims management, which ultimately benefits commercial brokers, lenders and SME clients alike. This move underlines our ambition to play a more active role in managing risk across the SME funding ecosystem.”