The Chinese Government has granted Lloyd’s a licence to establish a branch office in Beijing, 14 years after the market set up a representative office there.

Representative offices are usually the first step for foreign companies to establish a presence in China, allowing them to promote their brand and build relationships – with the Government in the case of Beijing offices – but not conduct business.

Lloyd’s can now underwrite from Beijing. Chairman John Nelson says the market’s underwriters in China “are providing a range of innovative insurance products, including specialist marine cargo, renewable energy technology and agriculture lines”.

Lloyd’s opened an office in Shanghai in 2007, licensed to underwrite onshore reinsurance throughout China. In 2011 it started writing direct insurance.

Syndicates can operate under the Lloyd’s umbrella without having to apply for their own licences.

Lloyd’s China CEO Eric Gao says non-life insurance penetration levels are low at 0.8% of GDP, but they have grown about 20% a year during the past three years.

About 73% of general insurance premium is for motor classes. Of the remaining 27%, nearly 6% is commercial property, 5% agriculture and 0.54% household property.