Lloyd’s is to apply for a Malaysian onshore licence to write reinsurance business in Kuala Lumpur, the London-based re/insurance market has announced.
The application is for a “tier 1 licence”, and open an office in Kuala Lumpur, after months of discussions between Lloyd’s and the Malaysian authorities, Lloyd’s said.
Lloyd’s intends to submit its application shortly, the market confirmed.
The release, confirmed by the UK and Malaysian governments, is part of an ongoing trade-building trip by the UK government to Southeast Asia.
“As part of Lloyd’s Vision 2025, Lloyd’s has made a commitment to increase its support to the world’s fastest growing economies,” said John Nelson, chairman of Lloyd’s.
“This new licence will enable Lloyd’s to strengthen our business relationships, deepen our understanding of the local risk landscape and offer new solutions to Malaysian businesses,” he added.
It follows Tuesday’s announcement of a new resilience partnership between Singapore’s regulator, the UK government and Lloyd’s of London, to work together on building catastrophe insurance resilience in Asia.
The proposed new licence would enable Lloyd’s to boost its Malaysian business. It already writes Malaysian business via London, Singapore and offshore in Malaysia via an office in the country’s Labuan offshore reinsurance domicile.
The new licence would support Malaysia’s developing insurance sector, while giving Lloyd’s an opportunity to develop its marine, energy, construction, engineering and liability business, as well as introduce new products to the market, Lloyd’s noted.
“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,” said UK Prime Minister, David Cameron.
"Lloyd’s ensures countries across Asia are protected which helps to safeguard their economic success," Cameron said.
Malaysia’s Prime Minister, 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,” he added.