The Insurance Regulatory and Development Authority of India (IRDAI) has given Lloyd’s of London the go-signal to provide reinsurance services in the giant economy of over a billion people.
With the approval, Lloyd’s can now set up a branch in India by 2017.
John Nelson, chairman of Lloyd’s, said: 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 center for insurance, reinsurance and associated services.
Nelson, who was in New Delhi as part of the United Kingdom Prime Ministerial trade delegation, applauded the decision. He also highlighted the efforts of the Indian government to open up the reinsurance market.
The progress India is making in reforming reinsurance markets is encouraging and will bring lasting benefits to the Indian economy, he said.
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.
Lloyd’s filed its application with IRDAI in March, seeking to open reinsurance operations in Mumbai. In April, it named Shankar Garigiparthy as country manager.
The organization believes that it can bring its extensive underwriting expertise and capacity to benefit the local market. It plans to cooperate with brokers and clients to create the policies needed to address the needs of the market.