US specialty insurer Markel is launching in Australia and has recruited Axa XL Head of Long Tail Lines Rory Morison to lead its operations here.

Mr Morison will oversee the business as Markel Australia MD and run the three offices that will open this month in Sydney, Melbourne and Brisbane.

Markel Australia says demand is growing for specialty commercial insurance, particularly in casualty and financial lines. The demand is driven in part by the growth of the digital economy alongside traditional industries.

The insurer plans to introduce new products to Australian clients such as its fintech and commtech insurance solutions that are designed to protect fast-growing technology businesses from a range of risks. These risks include professional indemnity, general liability, directors’ and officers’ liability, and cyber.

Markel will also continue to support Australian brokers and commercial customers with its broad range of specialist insurance products.

Additionally the insurer will focus on providing underwriting solutions to businesses that traditionally purchase insurance in the domestic Australian market.

“Australia is the world’s tenth-largest insurance market, and it’s growing. Specialist commercial insurance forms a significant portion of this premium,” Markel Asia Pacific MD Christian Stobbs said.

“We know that local underwriters understand local conditions and are uniquely focused on the needs of local clients.

“By establishing a strong underwriting presence in Australia under Rory’s leadership, we are well-positioned to serve our clients as part of the domestic market, raise our game, and further Markel’s international vision.”

Mr Morison says he is looking forward to leading the Markel team in Australia and expanding its presence here.

“We see significant opportunity for Markel within Australia as businesses adjust to the changing landscape, including the rise of the digital economy, increased scrutiny on director liability, and a spate of high-profile cyber breaches,” he said.

“Markel’s dedication to a strong local presence and on the ground capabilities will ensure that we are best placed to support our new and existing Australian brokers and customers.”

Markel is the insurance operations of New York-listed Markel Group. The insurance arm operates the Markel Specialty, Markel International, and Global Reinsurance divisions, as well as State National, a portfolio protection and program services company, and Nephila, an insurance-linked securities investment manager.