S.A. Meacock takes Lloyd’s China up to 11 syndicates
14 September 2007
S.A. Meacock and Co has become the latest Managing Agent to join Lloyd’s rapidly-growing China platform.
Ian Faragher, Managing Director of Lloyd’s China Re, confirmed Meacock as the 11th member of Lloyd’s China, four of which – Ace, Catlin, C.V. Starr and St. Paul Travelers – have underwriters based in Shanghai.
Faragher believes the success of the platform will encourage more participants to join. He said: “We are hopeful that the 11 managing agents will go up to 15 and the four insurers operating from China will go up to six in the not so distant future.
“Since we opened in China in April we have gone out into the market to see a lot of local and international brokers operating in China, and the Chinese ceding companies. We have run road shows the length and breadth of the country – in the southern cities of Guangzhou and Shanghai, and in Beijing and Xian in the north – to show how Lloyd’s China works, which is important because it is an unusual venture, and also to highlight its A+ financial strength.”
While being part of Lloyd’s China offers insurers many benefits, Faragher admits there is nothing better than being positioned in the country itself.
“There is a major advantage to being out there. This is a relationship-based business. Not everything will come direct to Lloyd’s China, so a broker will have to meet an underwriter to build that relationship. Being out here really maximises your benefits.”
Although Lloyd’s China is seeing a broad range of risks, they essentially fall into two categories. “We are getting the specialist risks that Lloyd’s deals better than most at, and we are getting the business that previously would have gone into the local market and not have made its way into Lloyd’s,” continues Faragher.
An added benefit for the rest of the Lloyd’s market is ease of access. Faragher explains: “In a lot of jurisdictions where Lloyd’s has a licence, you have to go out and find an office, but with Lloyd’s China all that work is done for you. If you are an existing Lloyd’s Managing Agent you can be there tomorrow. The underwriting room is open and to base a team there all you have to do is pay their salary.
“The question companies must ask themselves is ‘how could you not want to be there?’. To have this facility open to you is fantastic. You can go into one of the world’s biggest economies without having to spend much money or put up capital.”
But Faragher is adamant the local insurance industry will not suffer at the hands of Lloyd’s. He says: “We have been out there saying that the China market is very competitive. If there are 50 other companies in China that can cover a certain risk then let them do it. If you have a risk that you don’t quite know what to do with or you don’t understand the exposures then talk to us.”
S.A. Meacock joins a group consisting of Brit, Markel, Kiln, Chaucer, Atrium, Amlin, Catlin, Ace, C.V. Starr and St. Paul Travelers that have signed up to Lloyd’s China.
Last updated on 11 Oct 2007
