Lloyd's registers syndicates for Chinese reinsurance business
With effect from 1 January 2016, all onshore and offshore reinsurers and reinsurance intermediaries conducting Chinese insurance business were required to be registered with CIRC. Lloyd’s, in conjunction with Lloyd’s Insurance Company China Limited (LICCL), has completed this inaugural registration process on behalf of its syndicates.
In March 2015, CIRC published details of a mandatory registration process for all onshore and offshore reinsurers and reinsurance intermediaries, to take effect from 1 January 2016. Lloyd’s, LICCL and Lloyd’s syndicates were all required to separately register with CIRC and bespoke arrangements were agreed with CIRC as to the documentation required from Lloyd’s and its syndicates to permit registration.
All syndicates were to be registered, with the exception of special purpose syndicates, or those syndicates which advised they did not require registration as they were not undertaking, or expecting to undertake, Chinese reinsurance business.
Early in the process, Lloyd’s decided to coordinate registration on behalf of its syndicates. As the registration process required referral by a Chinese (re)insurer or broker, LICCL referred Lloyd’s syndicates for registration. Using centrally held information, Lloyd’s was able to complete much of the syndicate’s specific registration documentation; syndicates were required to provide any outstanding information and satisfy themselves that their registration documentation was complete and accurate. Finally, Lloyd’s uploaded to CIRC’s registration portal the necessary documentation for each syndicate.
All Lloyd’s syndicates which required reinsurance registration have now been registered with CIRC. Details of registered syndicates, including their registration ID and registration name, are available on Crystal.
Coverholders, including service companies, that wish to transact Chinese reinsurance business will be able to rely upon a syndicate’s registration ID as long as that syndicate has included the coverholder(s) on their list of authorised agents submitted to CIRC. Coverholders should seek this confirmation directly from the syndicates concerned.
CIRC’s requirements for reinsurance registration follow similar requirements by the Indian insurance supervisor, the Insurance Regulatory and Development Authority of India (IRDA), introduced in 2012, though these apply to foreign cross border (re)insurers only. In both China and India, the purpose of their respective reinsurance registration regimes appears to be an attempt to ensure cedants in their countries only transact with (re)insurers considered likely to be able to meet their future claims responsibilities.