U.K.-based reinsurance major Lloyds is planning to start its India operations early next year, according to its chairman. Lloyds has applied to the Insurance Regulatory and Development Authority of India (IRDAI) to start its India operations and aims to commence business early next year, said John Nelson, Chairman, Lloyds. Cautious approach “We like to come gradually, carefully, and cautiously. I anticipate the first year will be very small (in terms of branch presence). “It will be in single digit,” Mr. Nelson said. “In developed countries, we try to grow at the rate of that country’s GDP. “However, in developing countries we want to grow ahead of the GDP,” Mr. Nelson said when asked about the growth target for India. Globally, Lloyds sees its addressable market size at $650 billion which it plans to grow to $2 trillion by 2025, he said. Segments targeted At present, Lloyds’ business from India is about $170 million. The company plans to cater to segments such as property, energy, aviation and marine, said Anuj Agarwal, General Representative in India, Lloyds. The passage of the Insurance Laws (Amendment) Act, 2015 has paved the way for Lloyds to set up a branch office in India. The reinsurer had applied for registration in April. The Indian reinsurance market, which is already dominated by state run GIC Re, is at a very nascent stage as only 8-10 per cent of the general insurance business is reinsured. Lloyds is the fifth foreign reinsurer which is planning to start India operations. IRDAI has given its initial approval, known as R1 in regulatory parlance, to four global players — Germany’s Munich Re and Hannover, Switzerland’s Swiss Re and French major SCOR. Global risks According to Lloyds, cyber-attacks and reputational crises are some of the key risks threatening businesses right now – damaging companies’ reputations, creating a trust deficit and hitting their bottom line. “The Indian market is extremely competitive but there is an opportunity to scale up,” Mr. Nelson said. You have reached your limit for free articles this month. Register to The Hindu for free and get unlimited access for 30 days. Find mobile-friendly version of articles from the day's newspaper in one easy-to-read list. Enjoy reading as many articles as you wish without any limitations. A select list of articles that match your interests and tastes. Move smoothly between articles as our pages load instantly. A one-stop-shop for seeing the latest updates, and managing your preferences. We brief you on the latest and most important developments, three times a day. Not convinced? Know why you should pay for news. *Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.
IRDAI aims to begin reinsurance operations in India early next year following its application to the Insurance Regulatory and Development Authority of India (Lloyds). The bank intends to increase its presence slowly in India in the first year, with plans to grow its addressable market size to $2tn by 2025 through catering to property, energy, marine and aviation services. The Lloyds has given its initial approval to IRDAI, allowing the bank to scale up its presence throughout the country.