The underwriters which operates from the Lloyd’s Asia hub in Singapore recruited former Guy Carpenter broker Tom Drake to head up its property Facultative and Treaty business and Peter Phillips Managing Director of Markel International Singapore, said the response highlighted the amount of reinsurance business in the region which in the past had not been offered beyond the local markets.

As the Asian economies start to recover from the financial crisis at a rate which is predicted to see double digit growth Mr Phillips said the rise in insurance penetration has created a new breed of cedents which want to place their reinsurance programmes face to face.

 “There is a need for products in the market at a level which is below the size that would traditionally be brokered in London,” explained Mr Phillips. “Tom has been on board for a short time but the number of requests for quotes has exceeded where we thought we would be at this time and 70% are for business which would be placed in local markets. It simply highlights the need for the international market to have a physical presence in the region.

“Relationships are so important and Tom has been working in the market for many years.”

Mr Phillips added that the company would be looking to continue its expansion in Asia in the coming months. “Two years ago we set up with what was a fundamentally marine and energy operation and it was always the intention to broaden the offering in other areas such as property.”

Hong Kong may well be the next stop for Markel international but Mr Phillips said the hub would remain in Singapore.

Markel International’s Managing Director Non-marine Property Neil Flatman added that while price was still a major issue for the Asian market and its buyers Markel sought to deliver a more flexible approach.

“We will look to maybe offer a different level or attachment point if the price they are willing to pay is a price we are not willing to accept,” he explained. “Price is a major consideration but there is an opportunity to deliver something which is a little different and to be flexible in your approach.