Lloyd’s gets the go-ahead to develop its presence in The People’s Republic of China
Lloyd’s, the world’s leading specialist insurance market, announced today that it has been given the green light to establish an on-shore reinsurance operation in China.
The on-shore licence will give Lloyd’s an important strategic foothold in one of the world’s fastest developing insurance markets. It will enable Lloyd’s to reinsure local currency business, which currently comprises nearly 90% of the total Chinese market. It will also provide Chinese insurers with full access to the Lloyd’s market.
The announcement was made today (Wednesday, November 9) by Chinese President Hu Jintao during his state visit to Britain.
Welcoming the announcement, Lloyd’s Chairman Lord Levene said:
“Today marks a very important day in the history of Lloyd’s. China is forecast to become the world’s second biggest economy and will develop into one of the world’s largest and most important insurance markets. I am delighted that His Excellency, President Hu Jintao, has confirmed that Lloyd’s will now be able to support China in this critical area.
“I am very grateful to both the Chinese and UK authorities for their support and guidance, and especially to Prime Minister Tony Blair for his strong personal support on this issue over a long period. The granting of this licence represents a vote of confidence in the strength and expertise of the Lloyd’s market. Our focus now will be to develop and implement an operating structure within the next year.”
Lloyd’s Director, Worldwide Markets, Julian James said:
“China’s domestic insurance and reinsurance market is thriving. The significant demand for infrastructure, as well as growing property ownership and an increasing awareness of legal and property rights, are combining to underpin increasing demand for specialist insurance products.
“Lloyd’s has been supporting Chinese insurers with specialist reinsurance capacity and expertise for over three decades in areas such as Marine, Aviation, Energy and Nuclear Power risks, but in a limited, off-shore capacity. This licence will now enable Lloyd’s underwriters to develop a closer relationship with local insurers and provide them with the capacity to support the rapid growth of the domestic market.”
Notes for editors
1. Lloyd’s established a Representative office in Beijing in 2000 in order to promote a better understanding of Lloyd’s with the local insurance market and for Lloyd’s to understand the requirements of the local market.
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