The unit is led by Jim Loder who believes that businesses operating in today’s fast-changing business environment are increasingly facing the kind of complex, one-off risks that XL’s CSI team has been set up to deal with.In an interview with The Royal Gazette, Mr Loder explained that CSI will deal with risks that fall outside the mainstream insurance marketplace and which often transcend traditional lines of coverage.He gave the example of insuring the outcome of a court appeal that could have a major influence on a client’s business.Another example was successor liability, in which a company that merges with another faces risk of taking it its merger partner’s old liabilities.“We wanted to establish CSI in Bermuda because it’s a centre of insurance innovation,” Mr Loder said. “Bermuda is regarded as the Silicon Valley of insurance.“We wanted to create a centre of excellence in Bermuda to deal with complex, one-off risks that we are recognising an increasing need for in the market.”Mr Loder, chief underwriting officer and senior vice-president, has two colleagues in the team which was officially launched last month. His colleagues are vice-president and senior transactional liability analyst Andy Bray and transactional liability analyst Richard Hillen. Mr Loder expects the team to add a fourth member, with a legal background, by the first quarter of next year.Mr Loder, who has 25 years of industry experience, joined XLIB as vice-president of underwriting, professional lines, in 1999. He previously spent four years with Aon Group (Bermuda) Ltd as vice-president of professional liability.He believes that the CSI approach is a first for the Bermuda market.The CSI team spends much of its time brainstorming, exchanging ideas on how to deal with specific one-off risks and finding ways in which they could be insured. They leverage the resources and knowledge in other parts of the XL group as they practise what Mr Loder calls “deep-dive underwriting”.A major advantage of the CSI approach is that clients and brokers seeking a solution to a complex risk can get a much quicker response than they would through a traditional lines-based underwriting set-up.“An insurance company looking at these one-off risks can take months or even years to go through the bureaucracy, because of the way they’re set up,” Mr Loder said. “We have been able to respond within weeks.”From technological to financial to legal risks, the team has to deal with a wide range of areas.CSI will deal with significant risks carrying premiums of six figures and more, Mr Loder said.“No two deals are the same and no two days are the same,” Mr Loder said. “That makes this an interesting and rewarding work.“That’s why we have built our team. The whole idea is to be able to understand and complex risks and to be able to effectively underwrite them.”It is still early days for the team, but already the market response has been positive. So far around half of its business has come from North America. Brokers in London have also responded enthusiastically, Mr Loder said.