The concept is to provide the trading platform to buy and sell debt that is owed in this reinsurance sector,' said Mr Letts, a graduate of University College, Oxford.
Reinsurance is used by insurers to reduce their exposure to the risks that they underwrite.
The technology for the main trading system is due to be launched end of the second quarter to early third quarter this year. There are six test users on the system. The mid-80s witnessed what Mr Letts called 'macho underwriting' when insurers took crazy risks. European companies that dominated the reinsurance markets were not keen to buy into what these underwriters were doing and so the underwriters ventured elsewhere, buying cover from companies in Asia, Latin America and even Africa. The people dealing with the aftermath are finding that their companies are owed millions by often exotic reinsurers from whom it is difficult and expensive to collect debt due to various hurdles including judicial differences.