Underwriting agencies support company Rhodian says market conditions are favourable for start-ups to deliver new products with demand increasing for their expertise.

Rhodian, which launched last week, will provide a suite of support services including legal and compliance, finance, data analytics, capacity management and marketing to provide a faster pathway for start-up agencies to enter the market. US-based Amwins is taking a 40% holding in the enterprise.

“Underwriting agencies are playing an ever-increasing role in delivering strong insurance products to Australia’s broker networks,” Rhodian Chief Underwriting Officer Peter Takos says.

“Part of our focus is to match both domestic and international capacity with the strongest agency product offering, ensuring the evolving needs of broker clients can be met in a sustainable way.”

The Amwins Global Risks (AGR) business is one of the largest London brokers specialising in delegated authorities and capacity building, with over $US2 billion ($2.9 billion) of premium flow annually, MD Mark Cody says.

“We are truly a global broker, and this provides great diversification in territory and class of business,” he said. “We are excited to work with Rhodian and assist them as they look to build out this innovative business, attracting ‘best in class’ talent.”

Rhodian’s co-founders are CEO Simon Lightbody, Mr Takos and COO Tessa Chirnside. Kerryn Dominguez is CFO and Stephen O’Young Chief Technical Officer.

Mr Lightbody has worked in the insurance industry for more than three decades, including 10 years as Steadfast Underwriting Agencies CEO and nine years within his own business, Miramar Underwriting Agency. In the UK he worked at Lloyd’s of London.

Mr Lightbody tells insuranceNEWS.com.au that capacity is starting to become more available following hard market conditions and the environment has once again become favourable for new agencies, but hurdles are higher for start-ups than previously.

The Rhodian model allows agencies to slot in under its financial services licence, while it will take equity in the ventures in return for the funding and support services.

“We will be very selective,” Mr Lightbody said. “We have a selection process, and it does require a strong business plan and a strong proposition.”