The Channel Syndicate and Canopius will join Liberty Specialty Markets in forming a consortium to provide capacity for Toredo, an online platform for single situation trade credit insurance.
The London Market Credit Consortium (LMCC) will provide up to $75 million (£52.2 million) of capacity per risk for a maximum two-year period.
The capacity will initially support short-term trade finance business and can be accessed by any Lloyd’s accredited broker signed up to the Toredo platform.
Chris Hall, who was hired by Liberty Speciality Markets in January as consortium underwriter, said: “By forming this consortium we’re able to bring together like-minded underwriters who can provide significant capacity to the underwriting of short-term trade finance business.”
“At launch, the consortium will offer $27 billion (£19.5 million) of capacity covering 418 financial institutions in 72 countries. This capacity will grow as we engage with our brokers and clients to determine their needs.”
Bernie de Haldevang, head of specialty at Canopius, added: “This is a very exciting development for the structured credit insurance market. Providing dedicated capacity to the Toredo e-trading platform will create greater efficiencies in the underwriting of short-term trade finance risks, which will give brokers and their clients better access to a significant amount of capacity that has been rather dormant in this interesting part of the class to date.”
Kade Spears, divisional head of specialty at The Channel Syndicate, commented: “Our market needs an online, quote-to-bind platform for short-term trade finance. This will allow clients and brokers to transact in a more efficient and secure manner. Toredo provides that solution.”
Liberty announced plans to launch Toredo earlier this month. The launch date for both Toredo and the LMCC will be confirmed shortly alongside full details of its product range and instructions for accessing the platform.