Mizzima News - Llyod's writes to all agents to 'reconsider' business deals with Burma

by Solomon
Thursday, 02 October 2008 20:48

New Delhi - UK's leading insurance marketplace, Lloyd's of London, said it has written to all its managing agents to reconsider their business involvement with Burma's military junta.

Louise Shield, Head of Communications of Lloyd's, told Mizzima that the marketplace' s chairman has received a letter from the British Government's Foreign & Commonwealth Office (FCO) stating its disapproval over the market's involvement with Burma.

"We have been asking the government for guidance on doing business in Burma, and now we have received a letter. And we are writing to all our managing agents," Shield said.

But Shield said, the market's businesses in Burma are not significant and pulling out of the country will not have much impact on the market.


"We have very small amount of insurance business [in Burma]," said Shield. "Probably there is no significant effect in our business."

The response of Lloyd's of London, a leading marketplace in England dealing in reinsurance business, came after campaigners urged several insurance companies across the world to stop dealing with the Burmese military junta, as the regime is profiting from them.

Burma Campaign UK, a group advocating for human rights and democracy in Burma, has named 16 insurance companies including Lloyd's of London, Hannover Re, Catlin, Atrium, XL, Tokio Marine, Sompo Japan and Mitsui Sumitomo as groups having business dealings with the junta.

BCUK, in its report 'Insuring the generals' released in July said, these companies and insurers are providing billions of dollars to the Burmese military regime that is infamously known for repressing its citizens.

Johnny Chatterton, Campaigns Officer of BCUK said, "We welcome the impact of the government's letter, they [Lloyd's of London] now have to write to the entire marketplace. "

Chatterton said, while a few other leading insurance companies of the world have pulled out of Burma, Lloyd's has turned a deaf ear to the call made by him and his colleagues to cut all business ties with Burma's military regime.

In August, two of the world's leading insurance companies Chubb and XL capitals announced a stop to all business deals with Burma's military government in response to the BUCK's campaign.

"The British government clearly wants them to pull out, we want them to pull out," said Chatterton adding that the Burmese regime could lose tens of millions of Dollars if the Lloyd's stop insuring oil and natural gas in the Southeast Asian nation.

BCUK, however, said Lloyd's refusal to reveal the contents of the FCO's letter indicates that it wants to hide its involvement in Burma.

While admitting that Lloyd's has received a letter from the FCO, Shield said they cannot reveal the contents as it is "Private".

BCUK warned that avoiding to act in accordance with the letter would be breaking the government's guidelines and damaging their own reputation.

"If they don't end their involvement in Burma soon they will be branded by Burma in the same way that Barclays was in Apartheid South Africa and Exxon with climate change," Chatterton said in a press statement released on Monday.

"We warmly welcome the government's firm stand against Lloyd's, they should continue their leading role by pushing for targeted EU sanctions banning the provision of insurance services to Burma," Chatterton added.