Lloyd’s global underwriter Arch has joined four of the market’s Singapore-based syndicates to launch a consortium for Australian commercial property cover.

The “Climb” (commercial and light industrial medium-sized business) consortium will be unveiled at the Steadfast conference next month, but the first contract has already been written.

Arch is the lead underwriter working through its Australian operation, and will issue paper locally in a single transaction.

Regional Director Adam Matteson told insuranceNEWS.com.au the vehicle will have $15 million capacity to write wholesale and retail commercial property business.

He says the five partners are collaborating to ensure capacity is deployed easily and that brokers can talk to someone in their own time zone.

“They will have direct access to regional capacity for the first time in a co-ordinated fashion. It’s a good sign that Singapore and Australia are working together and we are showing brokers we can provide local-region support.”

Mr Matteson believes Climb will attract binder business, affinity schemes and brokers who want to avoid channel conflict or seek direct access to Lloyd’s capacity.

Work on Climb began 18 months ago in response to comments from brokers and agents who were struggling to access Lloyd’s capacity in the region.

They would speak to Lloyd’s underwriters in Australia, Singapore and then London, “and it was difficult to knit the capacity together”, Mr Matteson says. “There were examples where the process became more difficult than if the risk went straight to London.”