London-Based Lloyd's To Launch Malaysian Ops In Early 2017

KUALA LUMPUR, Sept 19 (Bernama) -- Lloyd's, the world's specialist insurance and reinsurance market, will launch its Malaysian operations in early 2017 once it secures the Tier 1 onshore licence within two months, said Chairman John Nelson. He said the company planned to start the business with up to three managing agents, which could not be disclosed, and expected to grow them gradually. "Once we are in, we certainly aims to grow a premium (for the reinsurance market) ahead of the gross domestic product (GDP) growth," he told reporters on Lloyd's' plan here Monday. Nelson said this in response to a question on how the company aimed to grow its venture in the country. The 328-year old London-based Lloyd's currently serves the Malaysian market as a Tier 2 reinsurer through its nine Labuan service companies and as a cross-border reinsurer primarily from London and Singapore. At the moment, he said, the company has written about US$140 million (US$1 = RM4.13) in offshore reinsurance into Malaysia. The application of the onshore Tier 1 reinsurance licence would enable the insurance giant to contribute greater capacity and specialist underwriting expertise in emerging and complex risks to serve the growing demand of the domestic insurance sector. Nelson said Lloyd's onshore presence would help protect Malaysia's economic growth by supporting the expansion of insurance penetration and limit the economic impact of catastrophes and other major events that could otherwise result in substantial costs for the state and taxpayers. He said Malaysia was an under-insurance country with the penetration level equivalent to about 1.8 per cent of GDP, compared with a global average of six per cent. "I think Malaysia is an advanced economy, so it's creating more risks that means we need to get the penetration (level) up," he said. Under the new licence, Nelson said, Lloyd's would provide a more comprehensive range of products for businesses and open opportunities for local talent development through employment and education opportunities. The focus for Malaysian operations would be in the areas of, among others, construction, engineering, marine, and energy, he said. --BERNAMA