Plant and equipment specialist underwriting agency CEMAC has agreed a new long-term security deal with Allianz Australia.

The deal, which took effect in April, is for more than seven years and has been welcomed by newly promoted CEMAC National Manager Stephen Borg.

“We were with a Lloyd’s facility operating out of London and the deal came up for renewal and was put out to tender,” he told insuranceNEWS.com.au.

“This long-term agreement with a local Australian insurer is big news for us – it makes communication much easier and brings additional capacity.”

Previously, CEMAC could write up to $20 million in-house, but it can now go to $50 million without referral.

“That’s huge, because a lot of clients that are getting government contracts need $50 million.”

Mr Borg has replaced Norm Verity, who moves to the National Technical Manager role.

CEMAC, an authorised representative of Austagencies, has also revised its policy wordings.

“They’ve been put into plain English and are much easier to navigate,” Mr Borg said.

“Between Norm and myself, we have more than 70 years’ underwriting experience, and I’m very happy to be working side by side with him.”