Lloyd’s to launch India operations in 2017

The Dollar Business Bureau

London based reinsurer, Lloyd’s, is set to commence its India operations in Mumbai at the beginning of next year.

The company has already applied for a licence to the Insurance and Regulatory and Development Authority of India (IRDAI), to operate in India. At present, the company provides offshore insurance to Indian businesses overseas.

The London-based specialist insurance solution provider may start its Indian operations on a smaller scale before scaling up its operations gradually. The company is predicting 8-10 percent growth rate in the Indian market.

After Lloyd’s starts its operations in India, it will gradually enhance its business in the neighbouring countries including Nepal and Sri Lanka.

John Nelson, Chairman of Llyod’s feels that India is an extremely competitive market for Lloyd’s, as many other global insurance companies are also planning to start operations in India.

“With good economic growth, India is an important market for us. We will commence our operations in India with two associations and would gradually develop our business in the country by providing solutions for complex as well as specialist risks such as energy, infrastructure, director and officer liability, trade credit, disaster management and terrorism,” Nelson said.

Lloyd’s is hopeful that the Indian insurance regulator would clear its pending application by the end of this year and pave the way for its formal entry into India in early 2017.

The London-based company stated that General Insurance Corporation of India (GIC Re) would have the first right of refusal in agreements. However, this will be reviewed after 12 months. The company is expecting more liberalisation in the country’s regulatory regime. The government has also been supporting the insurance industry, which would help newer companies to tap the market better.