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AUB sets up placement vehicle to handle complex risks

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Austbrokers, the broking arm of AUB Group, has established a dedicated unit to handle complex risks in response to ongoing challenging conditions in the market, which have been described by the industry as the toughest since 2000.

Not only have rates hardened significantly in the current market, insurers have cut back capacity, introduced stricter terms and conditions as well as declined renewals for businesses that are perceived to carry considerably high risks such as leisure park operators.

Austplacements will specialise in complex placements, providing support to broker members of the Austbrokers and Austagencies networks.

Heath Amber will lead Austplacements as CEO with effect from March 15, leaving his current role within MGA as Millennium MD.

“It’s become increasingly challenging to place risks in the local market, and we, unfortunately, anticipate this will continue for the foreseeable future,” Austbrokers and AUB Group CEO and MD Mike Emmett said in a statement today.

“Enhancing the ability of our brokers to place complex risks for their clients is an absolute priority.

“This new enterprise will enable us to improve the placement of almost $1 billion in premium that falls into this category.”

When asked if more risks in the future will be placed through London and Singapore, Mr Emmett told insuranceNEWS.com.au that “for some classes of risk, yes we do believe this will lead to an increase in risk placement in international markets”.

AUB says Mr Amber will also take responsibility for AustRe, Austagencies’ bespoke London placement and reinsurance capability.

“He is an established Austbrokers network member, a seasoned member of the Australian insurance industry, current director, and previous Chairman of the [Underwriting Agencies Council], and has long-standing experience dealing in the London market,” AUB says.