Returning from his overseas trip, Financial Supervisory Commission chairman Kong Jaw-sheng (
"Upon invitation, the insurance giant expressed interest in setting up offices here in Taiwan," Kong told a press conference yesterday.
Lloyd's, which is the world's second-largest commercial insurer and sixth-largest re-insurer, has a capacity to accept insurance premiums of US$4.9 billion this year and provides specialist insurance services to businesses in 189 countries.
Frank Ling (
He said that the investment would help accelerate the local insurance market's internationalization and facilitate a healthy brokerage system while providing a re-insurance channel for local insurers, which could further take advantage of Lloyd's business know-how.
To help facilitate the insurance giant's expansion plan, the commission will immediately revise administrative regulations so that the company can soon set its foot here, commission vice chairman Lu Daung-yen (
Ling, moreover, said that he hopes Lloyd's will stimulate the launch of captive insurance businesses in Taiwan, which provide coverage at a lower cost than is available in the general insurance market.
Other than Lloyd's, both Barclays Bank, which withdrew from Asian markets in 1995, and Barclays Capital also expressed a willingness to set up offices here, Kong said.
"They will extend their commercial banking and capital banking businesses into Taiwan's markets," he said.
Prudential Insurance Company of America has also expressed a commitment to Taiwan by shopping for a commercial building to be used as its local headquarters, according to Kong.
Since New York City and London are the world's two biggest financial markets, Kong yesterday said that his commission plans to set up offices in both cities to extend its supervisory power over domestic banks' foreign branches.
"The to-be-established New York and London offices will closely cooperate with their regulatory bodies while reaching out to other world-renowned financial institutions there," Kong said.
The commission's international affairs department will soon undertake studies to propose a detailed plan, he said.
In addition, the chairman yesterday said that Taiwan is mulling a measure to implement dual listings on one of three foreign trade markets, including the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT) and the New York Mercantile Exchange (NYMEX), all of which he visited during his two-day trip.
Kong said that the CME would consider listing its mini-gold index on Taiwan's market, while also expressing interest in inviting Taiwan's electronics index and financial index to list on its market.
Taiwan also inked a memorandum of understanding with the NYMEX to seek cooperation in the exchange of information, talent and financial products, Kong said.
On Oct. 28 and Oct. 29, Kong headed a delegation to attend a financial roundtable held by the International Organization for Governmental Securities Commissions. Members of the delegation included top policymakers Jerry Huang (