News
Lloyd’s Puts Mideast Plans On Hold
| April 21, 2010 by Rob Morris
Insurance practice biding its time as Middle East financial suffering continues.
Financial instability across Middle Eastern markets has forced Lloyd’s to delay plans of creating an insurance base in the region.
Jose Ribeiro, Lloyd’s director of international markets, said the company was monitoring the region after concerns about the Middle East’s economies and markets were raised.
He added it was unlikely a platform similar to Lloyd’s Asian trading centre in Singapore would appear in the Middle East anytime soon.
Plans to lay roots in the region were first mooted in 2008 prior to the economic crisis. But the financial crisis and lack of detail concerning takaful has so far perturbed the company.
Lloyd’s is believed to have recognised the potential of Islamic insurance, but remains reluctant to get involved due to having no personal lines dealings, which account for most takaful business.
The Middle East accounts for about $350 million worth of business on Lloyd’s books – a relatively small amount that could increase significantly if the company had regional operations.
