Berkshire Hathaway Specialty Insurance (BHSI) Australia and New Zealand has made an impact in the local market even before it obtains an operating licence, poaching key managers from rival companies.

AIG has been particularly affected, losing two senior executives from its Australian operations in recent weeks – the latest in a long line of recruits from AIG.

Matthew Clarke, AIG’s Sydney-based Asia-Pacific Regional Professional Indemnity Manager, has resigned from the company to head up BHSI’s professional indemnity arm. And AIG Liabilities Manager Andrew Spurr will become BHSI’s Head of Casualty.

Former AIG Singapore Head of Financial Lines Cameron McLisky was appointed in November to run BHSI’s New Zealand operation.

Meanwhile, former AIG Hong Kong and Taiwan Head Marcus Breuil now heads up BHSI Asia. Other senior AIG managers to take up top posts in BHSI’s Asia division are Australians Marcus Portbury (Head of Third Party Lines Asia) and Peter McKenna (Head of Construction & Energy Casualty Asia).

insuranceNEWS.com.au understands that senior managers from other insurers moving across to BHSI in Australia include HDI-Gerling Australia Property Manager Craig Taylor and Suncorp Commercial Insurance D&O Practice Leader Ryan Thomas.

Ironically, Mr Thomas’ father, Bob, is AIG’s President of Global Specialty Lines, based in New York.

BHSI Australia and New Zealand CEO Chris Colohan told insuranceNEWS.com.au he is unable to discuss details of the company’s plans until it obtains an Australian operating licence. This is expected in the next month or so.

BHSI was set up in the US in June 2013 with the intention of creating a global specialty insurer, and over the past few months has obtained operating licences in Hong Kong, Singapore and Canada.

Mr Colohan, an Australian who was formerly CEO Asia for UK insurer RSA, answers directly to Boston-based BHSI President Peter Eastwood.

Local insurance leaders are intrigued by the impressive beginnings of the BHSI operation in Australia, with one telling insuranceNEWS.com.au BHSI “is obviously very ambitious”.

“They are obviously setting their sights high,” he said. “They’re starting with a clean slate and a big cheque book.”

Another highly placed source told insuranceNEWS.com.au that “service is going to be the battlefield”.

“Margins in the commercial specialty market are going to be even tighter as premiums fall and new competitors like this one enter the market,” he said.

“You can expect to see rampant competition in the main classes of commercial insurance,” another executive said. “It’s not just going to be about retaining clients and worrying about pricing, it’ll be underwriting and claims too.”

Berkshire Hathaway has already made an initial foray into the local insurance market, with another local branch of the global insurance and investment giant announcing in November that it will underwrite a new line of retail insurance products for sale through Steadfast Group.

Steadfast Direct, which will be underwritten by Berkshire Hathaway Australia and New Zealand, comes into operation this month.