Veteran insurer Tony Lumsden-Cook is heading a new high net worth underwriting agency called Oak Underwriting.

The six-strong team will have the pen to quote for premiums worth up to £10m, which will be underwritten in Lloyd's by the Beazley Syndicate (623).

Former Cox underwriter Sarah Willoughby is one of two dedicated underwriters in the new venture, while the other is still working out their notice period.

Lumsden-Cook, who set up the high net worth division at Cox in 1992, said he would be looking for quality business rather than quantity. He expects Oak to write about £2m of premiums in the first year. Oak's first bespoke policy is Oak High Value Home.

Building and content claims are increased by up to 50% for clients with valuations less than three years old. Otherwise the sum insured is paid out. Restoration and depreciation costs are paid on precious items. For fine art and antiques either the agreed value will be paid or the item replaced.

Following a physical criminal assault, up to £10,000 will be paid towards upgrading security systems. Up to £15,000 will be paid towards essential alterations to a home if the client, or a member of a client's family is disabled through injury.

After three years, there is a 10% premium savings for claims free periods and a further 5% in years four and five to a maximum of 20%.