Area Riservata

China still integral to Lloyd's re/insurance market growth

China is to remain one of the most important frontiers for future growth in the Lloyd's of London re/insurance market, despite a "perfect storm" facing the global insurance market, Lloyd's of London chairman John Nelson has said.

Speaking to China Daily, Nelson said "low interest rates and the excessive amount of capital in the insurance sector are driving down both investment returns and premiums for insurers", but as part of Lloyd's Vision 2025 strategy, China will be integral to any future growth.

"Over the last few years China has become an extremely important platform for the Lloyd's market. In Shanghai and in Beijing, we now have over half of the Lloyd's managing agents physically present on the platform?31 to be precise," he added.

"We have increased our business substantially on this platform to 792m yuan ($114m) in gross written premiums in 2015, and we are confident we will surpass 2bn yuan for the past year and we continue to see China perhaps as the most important growth market in the long-term for Lloyd's.

"As a platform for international expansion, Lloyd's provides a really good springboard for Chinese insurers wanting to develop their international strategies. For example, China Reinsurance Group has joined the Lloyd's platform. We also signed a memorandum of understanding with China Taiping Reinsurance in October 2015. I think gradually these things take time and that global carriers from China coming onto the Lloyd's platform will increase."

Written by Adam Cadle - Insurance Asset Management Europe

09/01/2017