KUALA LUMPUR: Specialist insurance and reinsurance player Lloyd's is eyeing an onshore Tier 1 reinsurance licence in Malaysia.
Its chairman John Nelson is hopeful that Bank Negara Malaysia will approve the application for the licence in two months.
Operations are likely to begin in the first quarter of 2017.
“We are currently in advanced discussions," he said at a media briefing today.
Lloyd's currently serves as a Tier 2 reinsurer through its nine Labuan Service Companies and as a cross-border reinsurer from London and Singapore.
A Tier 1 reinsurance licence will enable it to contribute greater capacity and specialist underwriting expertise in emerging and complex risks to serve the growing demands of the domestic insurance sector.
Lloyd's will build on its marine, energy, construction, engineering and liability offering in Malaysia, working in partnership with local brokers to deliver solutions for many new infrastructure projects driven by the government's Economic Transformation Project initiatives.
Lloyd's also sees the potential for Malaysia to develop as a commercial takaful/retakaful market.