Insurance and reinsurance marketplace Lloyd’s of London has announced that its scheme allowing Lloyd’s underwriters to write Singaporean domiciled risk will be repealed by November 2022.
The scheme was established in 2000 as a temporary measure until the Lloyd’s Asia platform reached maturity.
Under the scheme, Lloyd’s underwriters outside of Singapore are licensed to write all classes of business shown to them by six authorised brokers, namely Aon, JLT, Lockton, Marsh, Willis Towers Watson, and Howden.
But the Monetary Authority of Singapore (MAS) has now advised both Lloyd’s and the brokers that the scheme will be repealed over a three-year period.
From 1 November 2022, underwriters will be able to write Singapore domiciled business on a cross border basis if the business is written via a Singapore intermediary which has obtained specific authorisation from the MAS.
Reinsurance business will still be viable on cross border basis, as will insurance business written directly from the insured, without the involvement of a Singapore intermediary.
The Lloyd’s Asia Scheme Regulations, which permit Lloyd’s underwriters to establish a service company on the Lloyd’s Asia Platform, contain a positive list of permitted classes of business.
However, there are a number of classes, including Property, General Liability, Accident and Health, Motor and Workers’ Compensation, which are not currently permitted to be written under the scheme.
Lloyd’s says it will continue to explore options with the MAS to enable underwriters on the Lloyd’s Asia Platform to provide a broader scope of specialist insurance products.
Going forward, Lloyd’s advised that managing agents with a Singapore service company should consider how this business may be transferred to Singapore, while those without may work with a Singapore service company to agree a partnership model.