Liberty Specialty Markets (LSM) will establish a $27bn consortium with the Channel Syndicate and Canopius to provide capacity for its new trade credit insurance platform, Toredo.

Together, the companies will provide up to $75m of capacity per risk with a maximum two-year period.

Initially, the London Market Credit Consortium (LMCC) will support short-term trade finance business. It can be accessed by any Lloyd’s accredited broker signed up to the Toredo platform.

The Toredo web-based platform is aimed for transacting specialized trade credit insurance for banks, corporates and commodity traders in the UK.

It will enable underwriters, brokers and clients to purchase and sell insurance capacity with better speed. 

The consortium will provide $27bn of capacity covering 418 financial institutions in 72 countries.

LSM consortium underwriter Chris Hall said: “By forming this consortium we’re able to bring together like-minded underwriters who can provide significant capacity to the underwriting of short-term trade finance business.”

Canopius specialty head Bernie de Haldevang said: "Providing dedicated capacity to the Toredo e-trading platform will create greater efficiencies in the underwriting of short-term trade finance risks, which will give brokers and their clients better access to a significant amount of capacity that has been rather dormant in this interesting part of the class to date.”

The Channel Syndicate specialty divisional head Kade Spears said: “Our market needs an online, quote-to-bind platform for short-term trade finance. This will allow clients and brokers to transact in a more efficient and secure manner. Toredo provides that solution.”

Lat month, LSM said it will shortly announce the full details of Toredo’s product range and instructions for accessing the platform.

LSM  provides specialty and commercial insurance and reinsurance products across key UK, European, Middle East, US and other international locations.

It offers brokers and insureds with a product range through both the company and Lloyd’s markets and have more than 1,000 employees in 22 offices across the world.

Image: Chris Hall. Photo: Courtesy of Liberty Specialty Markets.