Following the opening of Lloyd’s India in 2017, using on-the-ground research and interviews with Indian cedants, insurers and brokers, the Market Intelligence team has recently published an Indian Class Review.
The report is intended to support Lloyd's market participants to identify opportunities within one of the world’s fastest growing (re)insurance markets (28% growth in 2016 to reach US$20bn GWP).
The Lloyd’s India Class Review explores this growth, analyses the Indian market by class, compares it to Lloyd’s own business portfolio in India and considers opportunities for Lloyd’s underwriters such as in agricultural insurance (expanding on a recent Lloyd’s emerging risks crop report).
Macro factors are expected to drive growth in property insurance. With 2017 GDP growth of 6.7%, India is one of the world’s fastest growing economies, with increasing insurable assets, and a rapidly growing middle class. Over the next three decades more than 350 million Indians will move into cities, with a resultant change in risk profiles; Lloyd’s City Risk Index 2018 identified flooding as the top natural catastrophe to affect Indian cities, putting 8% of GDP at risk. These factors are expected to increase India’s very low insurance penetration rate of 0.77%.
Indian insurers have a strong desire to work with the specialist underwriting expertise within Lloyd's and believe it can add value within particular classes. In the Indian market, relationships remain key and the Lloyd's market has engaged with both local brokers and clients to understand the trends affecting the market while at the same time offering products tailored to local customers.
For market participants eager to learn more about the India insurance market a copy of the Class Review can be downloaded from www.lloyds.com/IndiaMI. Please contact WMID@lloyds.com for passwords to access the report. The Market Intelligence team will also be available at the desk in the underwriting room in London from 11:00 – 13:00 on Tuesday 3 July 2018.