London-based Lloyd's, the global specialist insurance and reinsurance market, today said the company has got first level approval from the Indian regulator to provide onshore reinsurance services in the country.
Lloyd's has secured R1 approval from Insurance Regulatory and Development Authority of India (IRDAI) to provide onshore reinsurance services in India, Lloyd's said in a release issued here.
This means that Lloyd's market is now in a position to set up a branch in India in 2017, it added.
"This is a very significant day for us and we look forward to establishing a branch in Mumbai in 2017. I believe we can bring unique benefits to India by providing both protection and new opportunities for many domestic insurance businesses," Lloyd's Chairman John Nelson said.
India, he said, is one of the world's fastest 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 centre for insurance, reinsurance and associated services," he added.
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," he said.
Lloyd's has been in discussions with IRDAI since it filed its application for a reinsurance branch based in Mumbai earlier this year, following the regulator's publication of the regulations governing the Lloyd's market in March 2016.
As part of its on-shore plans, Lloyd's appointed Shankar Garigiparthy as its new Country Manager for India in April, 2016.
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