Reinsurance business: Lloyd’s to apply for IRDA licence

Lloyd’s, the world’s specialist in insurance and reinsurance market, on Friday announced its intention to apply for a reinsurance branch based in Mumbai following insurance regulator IRDA’s publication of the regulations governing the Lloyd’s market earlier this week.

Like other reinsurers who want to set up operations in branch operations in India, Lloyd’s has to infuse a minimum assigned capital of Rs 100 crore into Lloyd’s India. Among other conditions, IRDA has stipulated that the Net Owned Fund of Lloyd’s will not be less than Rs 5,000 crore to consider granting licenses.

“An onshore branch will provide Indian reinsurance brokers with local access to Lloyd’s underwriting expertise and innovative reinsurance solutions for complex and specialist risks, including agriculture, infrastructure and disaster management. The UK-based firm has a century-long relationship with India as a provider of offshore reinsurance,” it said.