Hollard Insurance has picked up the niche taxi insurer Firma Insurance Services for an undisclosed sum from Asia Mideast Insurance and Reinsurance.

Hollard will begin underwriting Firma's policies from the start of next month, replacing the previous arrangement which had the specialist provider operating under a binding authority led by Amlin's Lloyd's Syndicate.

Hollard Senior Account Manager Mark Fleiser told Sunrise Exchange News the insurer plans to expand Firma's book from its current focus on Sydney metropolitan taxis.

"We're investigating plans in other states and other areas," he said.

Firma operates direct as well as via intermediaries, and other sources such as taxi networks provide referral business.

Mr Fleiser says Hollard will be retaining Firma's management team. Claims resulting from legacy policies in run-off will continue to be managed by the previous owners.

Hollard MD Richard Enthoven says the insurer has been eyeing the taxi niche area for some time.

"We have considerable taxi experience overseas and are familiar with the profit drivers," he said. "We believe the medium-term prospects for taxi insurance are very good, and we have been looking for the right opportunity to enter the market."