Lloyd’s Chairman Sax Riley has met with Chinese diplomats to discuss the possibility of the London market setting up an onshore reinsurance operation in China.

Lloyd’s has underwritten only a handful of Chinese risks through the international market since the early 1970s, but the opportunity to operate as a licensed reinsurer onshore would allow Lloyd’s to reinsure local currency business – an important consideration in a market that will lead the world within 30 years.

Mr Riley said he believes there is great scope for Lloyd’s to play a broader role in China in assisting Chinese businesses by removing their major risks. “A greater role for Lloyd’s will also allow us to share our knowledge and technical expertise with Chinese insurers, and provide those companies with greater capacity to take on larger risks,” Mr Riley said.