Lloyd’s China, Tokio Marine Kiln and People’s Insurance Company of China Property and Casualty Company (PICC P&C) signed a memorandum of understanding (MoU) to provide intellectual property infringement liability insurance in China.
Signed on Oct. 29 at PICC’s head office in Beijing, the MoU will enable PICC’s domestic clients to access enhanced IP infringement protection when operating overseas, Lloyd’s said in a statement.
Tokio Marine Kiln (TMK) will provide technical underwriting expertise and product structuring assistance to the PICC as part of a non-exclusive license agreement, Lloyd’s added.
“Chinese companies operating abroad are increasingly exposed to the uncertainties of IP litigation outside China,” said the statement. “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.”
Two additional agreements between TMK and PICC also were agreed: a non-exclusive license agreement and a reinsurance agreement via Lloyd’s China.
“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,” said Lloyd’s CEO Inga Beale.
The memorandum of cooperation was signed by Lloyd’s China CEO Eric Gao; Ian Lewis, intellectual property underwriter at TMK, and Chen Donghui, the product development director of PICC P&C.
“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,” said Gao. “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.”
Roger Bickmore, the group strategic development director of TMK, 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.”
Was this article valuable?
Here are more articles you may enjoy.