Strata insurer QUS will increase its risk capacity and look to expand its geographic reach after striking a new underwriting deal with AIG.

GM Craig Hodgson says QUS will raise its building sum-insured risk size to up to $100 million from about $30 million, opening up business opportunities.

“It puts us in a position now where we can seriously challenge the market leaders in that space and be seen as a genuine third alternative,” he told insuranceNEWS.com.au.

The underwriting agency currently covers risks south of the Tropic of Capricorn, including Australia’s east and west coasts. Expansion plans are likely to be announced next month.

The AIG deal takes effect on December 1, replacing an underwriting arrangement with WR Berkley. The QUS underwriting team will remain the same, and there are no changes to contracts or procedures for underwriting and accounts.

AIG Australia CEO Noel Condon says QUS’ relationship with brokers aligns with his company’s distribution model.

“AIG is delighted to be entering into this new partnership with QUS, to establish ourselves as a major player in the Australian strata insurance market,” he said.