Lloyd's, a global insurance and reinsurance player, has commenced its Indian operations, roping in MS Amlin as its first syndicate for its Indian branch and began underwriting on 1 April.
Lloyd’s India will act as a domestic reinsurance branch of Lloyd’s, providing capacity and expertise to support India’s growing economy.
"This is a true milestone in Lloyd's 328-year history," said Mr John Nelson, the Chairman of Lloyd's. "Lloyd's will help to strengthen and diversify the Indian reinsurance market, increasing the capacity, products and choice available to Indian insurers," he said. "This will, in turn, help to create a more vibrant insurance market and increase the level of protection across the Indian economy."
In India, insurance laws were amended a couple of years ago to enable Lloyd's function as a marketplace.
In an interview with Livemint, Mr Nelson said that in India, Lloyd’s, as a reinsurer, will play a major role in agriculture, property, catastrophe, construction, infrastructure, marine, aviation and transport and then in some of the areas in which Lloyd’s specialises in such as cyber risks.
Asked about Lloyd's operating model for India, he said: “We have an absolute policy that distribution of our products is done through our broker network. It is the broker network strength that has encouraged us to come here.”
He also said: “We have already put in the regulatory capital and further capital infusion will depend on how many managing agents come on board and what sort of businesses they bring in.”