Broking group Insurance Advisernet has formed a new business to handle natural disaster deductibles buydown covering flood, cyclones and earthquakes.

The company’s iaAgency was granted an Australian financial services licence last week and will be using a Lloyds’ global syndicate to underwrite the cover.

iaAgency GM Chris Collins told insuranceNEWS.com.au the recent disasters in Australia and NZ have created a growing market for this type of product.

He says iaAgency is looking at buydowns of $50,000 and above with premiums starting at about $2500.

If a client wants a larger buydown, there is the option of going of the floor at Lloyd’s to buy extra cover.

Indemnitycorp recently expanded its Australian buydown product to include flood. It had already covered cyclones.