Specialist insurance market Lloyd’s will open its India reinsurance branch in 2017. John Nelson, chairman of Lloyd’s, said they intend to begin small in India and would start off with few syndicates and managing agents.
“We will progress in the market gradually and do not want to flood it. When the branch opens up next year, it will begin small and later build up,” he said. In markets like Singapore, too, Lloyd’s started small and has grown bigger gradually over 15-17 years. Nelson said the aim was to grow ahead of the gross domestic product (GDP) growth in India. He added they expected more liberalisation in the regulatory regime. The insurance regulator has said that General Insurance Corporation of India (GIC Re) would have the first right of refusal in treaties. However, this will be reviewed after 12 months. The Insurance Laws (Amendment) Act, 2015, had allowed foreign reinsurers to have branch presence in India. This law also allowed Lloyd’s to set up its branch in India.