The Insurance Regulatory and Development Authority of India (IRDAI) has issued regulations to enable Lloyd’s, a global player in the insurance and reinsurance market, to set up business in India.
Following the passage of the Insurance Laws (Amendment) Act, 2015, Lloyd’s UK has been permitted to set up a branch office in India.
Lloyd’s India, being a market, shall ensure that the market and the constituents are housed within an office location of Lloyd’s India for the conduct of reinsurance business, IRDAI said in its regulation.
“Syndicates of Lloyd’s India through their service company shall transact reinsurance business with Indian insurers, as well as reinsurance business outside India in accordance with their laid down underwriting policy,” the regulation said.
IRDAI has said that the syndicates desiring to carry on reinsurance business through Lloyd’s India will need to have net owned funds of ₹5,000 crore. The regulator has also said that the syndicate placing reinsurance business through Lloyd’s will have two categories — in the first, the minimum retention of business will be 50 per cent, and in the second, the syndicate will retain 30 per cent of the reinsurance business.
The constituents of Lloyd’s India include members of Lloyd’s, service companies of Lloyd’s India and syndicates of Lloyd’s India.
