US specialty insurer Markel aims to expand its offerings in Australia, as its growth since launching here in 2023 exceeds expectations.

The Australian business is on track to write more than $80 million in premium this year, and there is potential to increase this as demand for specialty products remains strong, according to Markel International president Andrew McMellin.

“We’re very pleased with [our] progress ... I don’t think it’s beyond our ambition to think we should be getting $250 million in the next three to five years,” he told insuranceNEWS.com.au.

Markel started by offering mostly casualty, professional indemnity and management liability products. In the past year, it has introduced financial institution solutions, and it is looking to add marine to its suite.

“We want to become a leading specialty insurer in the Australian market, so we are thinking about the products we write around the rest of international business and how we can bring those specialty products into the Australian market for our brokers and clients,” Mr McMellin said.

Australia is “catching up really quickly” with Singapore and Dubai – Markel International’s leading Asia-Pacific territories.

London-based Mr McMellin was in Australia this month to meet with the team, broker partners and clients.

“Australia is a very mature market. It wants the specialty products we have,” he said.

“What we hear from the brokers we see, the clients we see … they like the fact our underwriters here are empowered and have all the authority they need ... they like the products we brought to write some of the tougher business that’s been difficult to place.”

Asked about softening rate conditions, he said: “I think the market is transitioning. I think the key for the market is creating a sustainable product.

“We need the marketplace to continue to be profitable because that provides a long-term certainty for our clients. 

“Too often in the past, if we see dramatic ups and downs in the market, that creates uncertainty for clients.”