There is appetite for New Zealand risk in London, but rates and terms are moving up very quickly, according to Lloyd’s broker Alan Rixon.

Mr Rixon is the MD of Ropner Insurance Services’ non-marine division and has visited New Zealand twice recently to arrange contractors all risks cover and other property risk in the London market.

He says London is opportunistic and if the price is right, someone will write business. “They use capital where there’s the best opportunity.”

Mr Rixon told insuranceNEWS.com.au that most reinsurers in the London market have been interested in New Zealand business through binding authorities but that is moving in favour of facultative business. The shift gives the reinsurer greater control over the risk it accepts.

Mr Rixon has put together a panel of underwriters in London to underwrite construction all risks and is receiving enquiries from brokers around New Zealand, and particularly Canterbury.

He was in New Zealand in November and noticed a marked change from his previous visit in August, when brokers had a “guarded” attitude towards reinsurance renewals.

“New Zealand brokers now accept there are huge problems in their existing portfolios,” he said. “Their attitude has changed.

“My desk is crowded with proposals from New Zealand brokers I’ve never even met.”

He says the departure from the New Zealand market of church-based insurer Ansvar indicates that some risks are going to be unaffordable in the future.

“So many carriers have pulled out of the market,” he said. “When I was in New Zealand in August there was a very guarded attitude to reinsurance rates next year.”

He says reinsurers’ risk appetite next year could be affected by the impact on the London market of the Thai floods.

“It has been very expensive,” he said. “It’s going to be a delicate balancing act in the treaty market.”