Reinsurance is a cover by which insurers transfer their risks to a third party. India can build up a strong financial service platform and support faster economic growth through its reinsurance policy. With this aim Insurance Regulatory and Development Authority of India (IRDA) have reframed their guidelines to facilitate the entry of foreign players into the reinsurance business. The leading global reinsurers including companies like Munich Re, Swiss Re, Lloyd’s, Hannover Re and SCOR are awaiting for the implementation of this bill that invites global reinsures to operate in India and to open branch offices in the country.
Michel M Lies, Group Chief Executive of Swiss Re has started their discussion with IRDA on their entry plan. Victor Peignet, chief executive officer, SCOR Global P&C SE announced that he was encouraged to learn more about the new development and detailed regulations that are necessary to have a branch office in the country for conducting the reinsurance business.
Jurgen Graber, the executive board member of Hannover Re said that they are in the midst of the feasibility study on setting up their branch in India and they are willing to start their operations soon. Chairman of Lloyd’s, John Nelson proposed that the new bill passed by the government will expand the company’s target market to India as it allows global reinsurers to operate in India and also seeks the support of the Indian government and other authorities for working together for the prosperity of the country.
India’s sole official reinsurer GIC Re is also drawing new strategies to with stand the competition from other global reinsures and to expand its global business. They take this increase in competition from other global reinsurers as a welcome step to improve their business strategies and to diversify their business by entering into newer markets and working on newer products-said A K Roy, CMD, GIC Re.
The new reinsurance bill not only brings the international reinsurers but also facilitate domestic entities to enter the reinsurance sector. Experts have the viewpoint that the entry of global reinsurers will benefit the customers with better pricing, product design and servicing facilities and makes the country to develop as a global reinsurance hub and support faster economic growth.
