Bermuda-based Axis Specialty is set to outsource its entire back office, said chief executive John Charman.
Speaking for the first time about his new venture Charman, who is also a director of its ...
Bermuda-based Axis Specialty is set to outsource its entire back office, said chief executive John Charman.
Speaking for the first time about his new venture Charman, who is also a director of its UK office, added the company planned to move into the London Underwriting Centre. The organisation had also applied to open new offices in another tax-free haven, Dublin, and would also have an operation in New York.
Charman was formerly group president and chief executive officer of Ace International. He left Ace last year and will be working in London when his non-compete clause expires on 17 March.
"We are building a global specialised business with a modern platform," he said. "It is going to be very different to other people.
"We are using technology as a business platform. All other businesses are using archaic methodology. They are not anywhere near as comprehensive."
He said traditional insurance and reinsurance companies were "overwhelmed by infrastructure, staffing and cost issues". Charman described one advantage of starting a new firm with $1.65bn (£1.16bn) of capital from Marsh & McLennan was that the company could use web-based technology.
He said: "All back office will be outsourced. Paper handling is something I do not want to be internationally famous for."
Charman said the London branch would employ 30 staff in the Company Market.
"We are hoping the office will be in Minster Court and are signing the lease," he said.
"A lot of people from the London Market who are recognised leaders will be joining us. It will be ready by April."
Charman added that Axis Specialty was going through the regulatory processes to open a subsidiary in Dublin.
It would write insurance and reinsurance business, employ 10 to 12 people and was set to open at the same time.
There were also plans to create a New York office to write property risks.
Charman described the World Trade Centre tragedy as the beginning of a new era in the insurance market.
"The tragic loss of 11 September is transformational in its nature," he said.
"It will lead to the rejuvenation of the industry. I hope that what emerges will be much stronger, more efficient andbetter capitalised and equipped."
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
