Lloyd’s has been given permission to write direct insurance in China – a move being hailed by the London-based market for the opportunities it presents.

Chairman Lord Levene says the deal is a “very significant development for both Lloyd’s and the Chinese insurance market”.

Lloyd’s China has been operating since May 2007, but has previously been restricted to writing reinsurance.

Few details of the new licence have yet been made available, but it is expected to come into effect next year.

Lord Levene announced the licence deal in Shanghai last week, thanking the China Insurance Regulatory Commission for its help and noting the development of the China business “will be a further important building block in the development of Shanghai as a major international financial and maritime centre”.

The expansion of the Lloyd’s operation in China is expected to benefit the market’s coverholders, with Australian sports and leisure insurer Sportscover saying the deal is “an amazing achievement”.

“This is a huge market that is developing rapidly,” Marketing and International Business Development Director Steve Boucher told insuranceNEWS.com.au.

“For example, we understand there are 100 million table tennis players in China. If you are talking about so many people getting involved in sport, the market is absolutely huge for us.”

Melbourne-based Sportscover MD Peter Nash was one of five Lloyd’s coverholders to join Lord Levene in Shanghai for the announcement.