Lloyd's, which is planning to set up operations in India, feels there is a need for prudential, proportional regulation supporting well capitalised re-insurers.
"We also regulate the Lloyd's markets consisting of large syndicates and not only our regulations are tough, but also we operate in many global markets, having strong yet business-friendly regulations. There should be no place for bureaucratic hurdles or over-regulations blocking business development," Lloyd's chairman John Nelson said in statement.
Describing the current non-life market in the country as highly competitive one where low margin or negative returns prevail, Nelson said, "It is an under-penetrated market and we would act as a specialist insurer which has a huge potential in the country.

"We are very pleased that the Insurance Bill with Lloyd's chapter has been passed by the Indian Parliament, which will increase insurance penetration. It will aid growth of economy and help diversify some of the major risks out of country."

He expected several members of Lloyd's to set up base in the country over time, and confirmed that Lloyd's is in discussions with IRDAI on the modalities of Lloyd's entry.
There is no clarity yet on where Lloyd's branch will be established or how many syndicates will co-locate with it to India to begin with, Nelson said.
However he hinted that Indian operation will be on the similar pattern as Lloyd's Singapore operations where it has 18 syndicates underwriting the Asian business.
The Singapore operations gives Lloyd's an underwriting base to access both local and regional insurance and regional business.

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