Allianz unveils new AGCS reinsurance branch in India; appoints CEO

Allianz Global Corporate & Specialty (AGCS), Allianz group's specialist corporate insurer, has launched a new reinsurance branch in India to capitalise on opportunities in what it calls one of the fastest emerging re/insurance markets, while expanding its business in Asia Pacific.

Based in Mumbai, the new branch will offer faculatative, proportional, and non-proportional reinsurance solutions on property, liability, marine, financial, construction & engineering, and energy lines of business.

AGCS India will be led by CB Murali as CEO. Murali was previously the head of Bajaj Allianz’s global risks division. Bajaj Allianz General Insurance Company is a joint venture between Allianz SE and Bajaj Finserv.

The German insurer received the necessary reinsurance license from the Insurance Regulatory and Development Authority of India (IRDAI) earlier last year, following the Indian government’s move to amend regulations and open the reinsurance market to foreign companies in 2016.

AGCS sees the Indian corporate insurance market as holding significant potential due to its size, low penetration rates, and expected growth of the economy.

“India’s continued rapid growth and the opening up of the domestic reinsurance market to foreign owned insurers makes it the ripe time to have our own branch in the country," said Sinéad Browne, AGCS Board Member and chief regions and markets officer for Asia Pacific. "This will allow us to better help clients navigate the continually evolving risk landscape with local underwriting and risk management expertise. India has huge potential to develop into a major reinsurance hub in Asia and we aim to part of this future success story.”

AGCS said it is eyeing opportunities arising from large scale construction projects under the $106 billion Bharatmala infrastructure development plan, as well as strong contributions from the automotive, electronics and high-tech communication industries.

The insurer also expects particular demand for reinsurance capacity for cyber and initial public offering (IPO) insurance, offered under the financial lines line of business. India is ranked as the third most vulnerable country to cyber threats, and 51 percent of India risk experts surveyed for the 2019 Allianz Risk Barometer report ranked cyber incidents as their top risk of 2019.

Furthermore, Allianz expects the new branch to benefit multinational AGCS clients with Indian business interests. The local branch is likely to provide AGCS with larger access and priority to business ceded by Indian insurers than it would have as a foreign-based reinsurer.

Mark Mitchell, regional CEO AGCS Asia Pacific, said: “India has long been a key part of AGCS’s regional portfolio, and I look forward to the even closer collaboration with our business partners that this local branch will allow. As a leading global player in the reinsurance industry, the set-up of AGCS India will strengthen the expertise acquired by our previous operations in the India market and help us meet our clients’ continually changing needs.”

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