Specialty insurer Markel has extended its insurance offerings in Australia with a new suite of financial institutions (FI) products, as part of its continuing local market strategy.
The expanded offerings follow the 2024 launch of commercial professional indemnity cover with Australian-specific policy wordings.
Markel’s new FI solutions will initially feature investment managers insurance, with further primary policies planned for release in July. These include directors and officers (D&O) liability, professional indemnity, and crime coverage tailored to the financial services sector.
The insurer is targeting a wide range of entities such as superannuation funds, credit unions, venture capital and private equity funds, non-bank lenders, real estate investment trusts (REITs), investment managers, and FinTech companies.
To support its product rollout, Markel has reinforced its Australian presence.
Senior underwriter Lan Pham will oversee the initiative from Melbourne, with senior underwriter Daisy Galvin relocating from London to Sydney to further develop the local portfolio.
Claims handling and underwriting services are now based domestically to provide timely, market-relevant support.
Kym Beazleigh, Markel’s head of professional and financial risks in Australia, noted that demand for financial lines is increasing, driven by a more digitised business environment and heightened liability risks for directors.
“We have seen growing demand across Australia for financial lines, particularly for financial institutions. This has been driven in part by the growth of the digital economy alongside traditional industries, increased scrutiny on director liability, and a spate of high-profile cyber breaches,” he said.
He further noted that institutions face challenges from evolving regulation, ESG and climate reporting obligations, and rising cyber threats.
“If they’re inadequately managed, they can cause significant damage to an institution and their clients’ financial portfolios. We understand these risks and provide dynamic insurance solutions to fulfil the unique needs of the financial sector,” Beazleigh said.
Since entering Australia in 2023, Markel has focused on developing specialised offerings aligned with the needs of domestic brokers and insureds.
The new FI products mark the next stage in this approach.
“We see a genuine need for more locally empowered underwriters in Australia, and we’re excited to have Daisy join us from our London office to bolster our expertise in the FI space. We’re very excited to bring these products to market, which combine the best of what Markel offers globally with our local IP and expertise,” said Markel Australia managing director Rory Morison.
The launch comes as global D&O insurance markets continue to evolve.
A report from Gallagher Specialty indicated that while price competition continues, the rate of decline is tapering as carriers reassess risk and profitability.
Key emerging risks identified in the report include:
In Australia, insurers are placing greater focus on policy structuring, especially around lower-excess coverage, as they respond to a stabilising pricing environment.
