The FINANCIAL -- Lloyd’s China, Tokio Marine Kiln (TMK) and People’s Insurance Company of China Property and Casualty Company (PICC P&C) signed a Memorandum of Understanding (MoU) to provide intellectual property (IP) infringement liability insurance in China, marking the first “white labelling” product development agreement in the region.
The memorandum of cooperation was signed on Thursday 29 October by Lloyd’s China CEO Eric Gao, Ian Lewis, Intellectual Property Underwriter at Tokio Marine Kiln, and Chen Donghui, the Product Development Director of PICC P&C at the head office of PICC P&C in Beijing, during Lloyd’s CEO Inga Beale’s visit to China for the upcoming grand market event Lloyd’s Day to be scheduled on 30 October, according to Lloyd’s.
The MoU will enable PICC’s domestic clients to access enhanced IP infringement protection when operating overseas. TMK will provide its technical underwriting expertise and product structuring assistance to the PICC as part of a non-exclusive license agreement. Two additional agreements between TMK and PICC were agreed during the ceremony today in Shanghai: a non-exclusive licence agreement and a reinsurance agreement via Lloyd’s China.
Chinese companies operating abroad are increasingly exposed to the uncertainties of IP litigation outside China. The differing laws across jurisdictions can create a legal minefield for product and service providers. A feature of the policy will be contractual indemnity for companies to cover risks such as patent infringement and trade secret misappropriation.
Inga Beale said:
“There are two crucial strategies that have helped Lloyd’s to outperform the market in the past three centuries: venture into new markets and staying at the forefront of innovation. This MoU symbolizes the strategic priorities of Lloyd’s. We would like to see constant cooperation with PICC on product development.”
Eric Gao said:
“It is a win-win strategy for TMK and PICC P&C’s cooperation on developing the IP infringement liability insurance together in China market. Lloyd’s China has driven the initiative and coordinated negotiations for a long time before it came true. This achievement is an excellent reflection of Lloyd’s Vision 2025 and one of the strategic priorities of increasing distribution relationships. I look forward to seeing more product development initiatives to realize via Lloyd’s China platform.”
Wang Leshu said:
“We look forward to enhancing mutual exchange and cooperation with Lloyd’s and its syndicates in a long-term partnership.”
Roger Bickmore, the Group Strategic Development Director of Tokio Marine Kiln said,
“China is a key market for our business and our growth strategy for the country has been to partner with local firms; we provide the technical expertise and our counterparts offer the local know-how and distribution channels. This deal with the PICC is an example of that strategy in action. We look forward to working closely with them in the future to increase the range of specialist products available to Chinese businesses.”