The Channel Syndicate and Canopius will join Liberty Specialty Markets in forming a consortium to provide capacity for Toredo, an online platform for single situation trade credit insurance.
The London Market Credit Consortium, will provide up to $75m of capacity per risk with a maximum two-year period.
The capacity will initially support short-term trade finance business and can be accessed by any Lloyd’s accredited broker signed up to the Toredo platform.
Chris Hall, who joined LSM in January as consortium underwriter, said: “By forming this consortium we’re able to bring together like-minded underwriters who can provide significant capacity to the underwriting of short-term trade finance business.
“At launch, the consortium will offer $27bn of capacity covering 418 financial institutions in 72 countries. This capacity will grow as we engage with our brokers and clients to determine their needs.”
The Toredo e-trading platform comes amidst calls for greater efficiencies and a focus on modernisation in the Lloyd’s and London market.
News the market is not adopting changes fast enough prompted Lloyd’s CEO Inga Beale to propose a mandate for the use of electronic placement across the market to support face to face negotiation, increase efficiency, reduce back office costs, and improve customer service.
There are currently three lines of business on the electronic placement platform: marine, terrorism, and financial and professional lines.
Kade Spears, divisional head of specialty at The Channel Syndicate added: “Our market needs an online, quote-to-bind platform for short-term trade finance. This will allow clients and brokers to transact in a more efficient and secure manner. Toredo provides that solution.”
Liberty announced plans to launch Toredo earlier this month. The launch date for both Toredo and the LMCC have not yet been confirmed.
- Roundtable: Is a single customer view taking off in insurance?
- O’Connor replaces Fairchild at the helm of Broker Network
- Home insurance insurtech Buzzvault launches
- Stackhouse Poland makes fourth acquisition of the year
- CBL Corporation expected to be placed in liquidation, sees further delays to watershed meeting
- Ed unveils CEO Hearn’s replacement and plots Bermuda office
- GRP’s Craig Pocock on SMCR