Lloyd’s has announced that it intends to apply for an onshore reinsurance license in Malaysia. The move has been confirmed by the UK and Malaysian governments.
The announcement that Lloyd’s will apply for a “Tier 1 license”, and open an office in Kuala Lumpur, follows some months of discussions between Lloyd’s and the Malaysian authorities. Lloyd’s said it “intends to submit an application shortly.
“The proposed new license will enable Lloyd’s to increase the support it can offer in Malaysia. Lloyd’s is already an important insurer and reinsurer in Malaysia, writing Malaysian business from London, Singapore and an offshore office in Labuan.”
The announcement also explained that the “new license will give Lloyd’s a significant opportunity to develop its marine, energy, construction, engineering and liability business, as well as introduce new products to the market.
“A Lloyd’s market presence will also support the development of the Malaysian specialist insurance industry through employment and education opportunities for local insurance professionals.”
UK Prime Minister David Cameron, Malaysian Prime Minister, Dato’ Sri Mohd Najib Tun Abdul Razak, and Lloyd’s Chairman John Nelson made the following comments:
Cameron said: “As a world leading insurance provider, Lloyd’s plays an important role in protecting millions of people in the region from the financial losses of natural disasters. Lloyd’s ensures countries across Asia are protected which helps to safeguard their economic success.”
Dato’ Sri Mohd Najib Tun Abdul Razak said: “I welcome Lloyd’s of London decision to invest in Malaysia. As one of the world’s eminent insurers, Lloyd’s can contribute significantly to our specialist insurance industry. Lloyd’s decision to invest here demonstrates its confidence in our economy as well as reflects the increasing sophistication of risks in our businesses and industry.”
Nelson said: “As part of Lloyd’s Vision 2025, Lloyd’s has made a commitment to increase its support to the world’s fastest growing economies. This new license will enable Lloyd’s to strengthen our business relationships, deepen our understanding of the local risk landscape and offer new solutions to Malaysian businesses.”