Former Copenhagen Re CEO Andrew Allison has set up CBD Syndicate Underwriting in Sydney in a bid to offer Lloyd’s reinsurance products direct to the Australian market.

The new business will offer cover to smaller insurers and companies that don’t deal directly with Lloyd’s.

Lloyd’s general representative in Australia, Keith Stern, says CBD is the only business in Australia in which reinsurance is written locally rather than through the syndicates in London.

“Lloyd’s has about 75 agents in Australia dealing with Lloyd’s products, but none of them deal with reinsurance,” he said. “This arrangement will mean brokers won’t have to travel to London, and Lloyd’s products will become much more accessible.”

Mr Allison told Sunrise Exchange News that the opportunity to create the business arose from a growing shortage of reinsurance products in the Australian market.

“CBD is all about bringing Lloyd’s to the local market and combining the knowledge of local professionals with the resources that Lloyd’s has to offer.”

The new operation will operate via a coverholder agreement with broking firm Arthur J Gallagher.