Lloyd’s Reinsurance To Set Up Shop In India
London-based Lloyd's, the global specialist in the insurance and reinsurance sector, has announced that its finally got the first level approval from the Indian regulator to provide onshore reinsurance services in the country, making it the first foreign player to enter the reinsurance market in the country.
Lloyd's has secured R1 approval from Insurance Regulatory and Development Authority of India (IRDAI) to provide onshore reinsurance services in India, Lloyd's said in a release issued here.
Lloyd’s Chairman John Nelson who is accompanying the British Prime Minister Theresa May on her visit to India, told BloombergQuint that the reinsurer sees India as one of the two biggest reinsurance markets in the world right now. The other one being China.
We believe that it would be great for the Indian economy and Indian insurance industry and of course for Lloyd’s London. The reason for that is that India has grown enormously, there is all kind of dynamics at work, greater urbanisation creating greater concentration of risk, susceptibility to climate change, susceptibility to natural catastrophe and of course growing commercial sector.John Nelson, Chairman of Lloyd’s
A minor irritant for the London-based reinsurer is the right of first refusal reserved for domestic reinsurance players like General Insurance Corporation of India (GIC), but Nelson believes that the regulator and the government are apprised of the situation, and is looking to amend the rules to provide a more level playing field in the country.
We believe that a level playing field is in the interest of the Indian economy because it will encourage more people to come in in the level playing field terms.John Nelson, Chairman of Lloyd’s
Lloyd’s has already filed its documents for the second stage of approvals and hopes to open its first branch in Mumbai next year.
With inputs from PTI.