Lloyd’s aims to strengthen its presence in China by opening an underwriting office in Beijing.

“We plan to apply for a licence to do so, but are not closer than that at this stage,” a spokesman told insuranceNEWS.com.au.

The market wants to expand its overseas hubs, particularly in Asia, as part of its Vision 2025 strategy. It opened an office in Shanghai in 2007.

CEO Richard Ward says the potential rewards from China are significant, although the market is challenging and local groups are dominant.

“What we need to understand is where we can add value rather than compete with the incumbents,” he told the UK’s Daily Telegraph. “If we try to just compete, it would be extraordinarily difficult.”

The office in China will focus on a range of specialty insurance, including marine cargo, renewable energy technology and agriculture, Mr Ward says.