The decision means that the Lloyd’s market is now in a position to set up a branch in India in 2017.
Visiting New Delhi, as part of the United Kingdom Prime Ministerial trade delegation, Lloyd’s Chairman John Nelson welcomed the decision and supported the programme of reform being undertaken by the Indian Government to open up their reinsurance market.
Lloyd’s Chairman, John Nelson said:
"This is a very significant day for Lloyd’s and we look forward to establishing a branch in Mumbai in 2017. I believe Lloyd’s can bring unique benefits to India by providing both protection and new opportunities for many domestic insurance businesses.
“India is one of the world’s greatest growing economies. I passionately believe that our presence will contribute to the development of a more diverse reinsurance market, which is fundamental to the stability and future growth of the Indian economy. This can help position India as a centre for insurance, reinsurance and associated services.
“The progress India is making in reforming reinsurance markets is encouraging and will bring lasting benefits to the Indian economy. A level playing field for all reinsurers will mean that domestic market can thrive and become a hub for innovative new products that meet the need of businesses.”
International Trade Secretary, Liam Fox, said:
“This is a symbolic decision and one that will not only provide protection for growing Indian businesses but also bring additional revenue to the UK insurance sector.
“This move is yet another example of the strong economic and commercial partnership between the UK and India - a partnership that is extremely important to me and the UK government. The bonds we share, not just of commerce and trade but also historically and culturally, will be at the very heart of the strategic relationship between our two nations.”
Notes to editors
Lloyd’s has been in discussions with the Insurance Regulatory and Development Authority of India (IRDAI) since it filed its application for a reinsurance branch based in Mumbai earlier this year, following the IRDAI’s publication of the regulations governing the Lloyd’s market in March 2016.
As part of its on-shore plans, Lloyd’s appointed Shankar Garigiparthy as its new Country Manager for India in April 2016. Shankar joined Arun Agarwal, General Representative for Lloyd’s in India since 2011 and together they have been leading the development of Lloyd’s presence in India.
Lloyd’s believes its market structure will bring additional underwriting expertise and capacity to the local market, and is working with brokers and clients to craft policies that meet specific needs and fill gaps in the market.
Lloyd's is the world's only specialist insurance and reinsurance market that offers a unique concentration of expertise and talent, backed by strong financial ratings and international licences. It is often the first to insure new, unusual or complex risks, providing innovative insurance solutions for local, cross border and global risks. Its strength lies in the diversity and expertise of the brokers and managing agents working at Lloyd’s, supported by capital from across the world. In 2015, more than 90 syndicates are underwriting insurance and reinsurance at Lloyd's, covering all lines of business from more than 200 countries and territories worldwide. Lloyd's is regulated by the Prudential Regulatory Authority and Financial Conduct Authority.