Diversifying risk is a necessity for China as the country becomes more industrialized and urbanized, says John Nelson, chairman of insurance market at Lloyd's of London.

Nelson says that China will become increasingly exposed to specialist risks, such as business interruption, cyber security, energy and property as its economy matures. Institutions, such as Lloyd's of London, which have rich international experience in risk management, are in a good position to help China through the maze.

"China is very important to Lloyd's. Historically most of our business comes from developed markets, but significant growth is also coming from the emerging markets, led by China," Nelson says.