A new Lloyd’s consortium will offer cover of up to $US30 million ($39 million) per location for livestock risks, with Australia expected to be a key market.

The consortium is led by specialist insurer Markel International, which has joined forces with Tokio Marine Kiln, Pembroke and Aegis.

Lloyd’s General Representative in Australia Chris Mackinnon says the consortium offers an easier way to access high levels of cover, which can be complex in the case of vast holdings with large numbers of cattle.

“Australia is one of the key territories where they are looking to promote the consortium,” he told insuranceNEWS.com.au.

“It is an opportunity for brokers here to access a high level of capacity for livestock risks through a consortium at Lloyd’s.”

Markel says the consortium offers larger single-risk capacity than is usually available in the market, and reflects the growing scale and value of farms and their livestock, as well as the increasing incidence of pandemic risks such as avian flu and foot and mouth disease.

“The market needed single-source capacity to deal with these larger risks and to meet the needs of brokers who have been successfully developing demand for such policies,” Markel International Senior Underwriter Global Livestock Robert Wells said.