MS Amlin, a syndicate of Lloyd's India, has exited the Indian reinsurance market after a group-level global decision. London-based specialist reinsurance market Lloyd’s operates here through its India branch that was set up in April 2017.
The insurance regulator in a notification said that MS Amlin through Lloyd's India had informed them that as a part of a group-wide review of MS Amlin's operating structure and performance, the entity has decided to discontinue business operations in India. MS Amlin had entered India in June 2018.
Subsequent to this, Insurance Regulatory and Development of India (IRDAI) has decided to cancel the order of the service company.
At Lloyd's, its members come together as syndicates to insure and spread risks of different businesses, groups, companies and individuals. Each of syndicate is a specialist in different types of risks and decide which type of risks would be insured by them.
MS Amlin in FY18 had taken up the business of Agriculture Insurance Company and entered into a novation agreement for transfer of the existing reinsurance treaties to MS Amlin Underwriting (Managing Agent for Syndicate 2001), at Lloyd's London.
Novation agreement means a contractual obligation wherein one party is replaced with another party. The rest of the deal remains the same.
MS Amlin through Lloyd's India has confirmed that they have not underwritten any business other than that of Agriculture Insurance Company.With the cancellation of the license, MS Amlin is required to close all its bank accounts in India and submit supporting documents to IRDAI. The entity also had to ensure that any issues on the novation agreement will have to be escalated to Lloyd's London to ensure speedy resolution.