istock-511210744-onypix--3
iStock/ Onypix
13 December 2018Insurance

Foreign reinsurers can now outbid GIC Re for business in India

Foreign reinsurers operating in India will now stand a better chance of winning business in the country after the Insurance Regulatory Authority of India (IRDAI) changed its rules around how domestic insurers buy reinsurance, according to media reports in India.

Previously, domestic reinsurer GIC Re had the right of first refusal on business ceded by domestic companies. Now, in an important change, if other reinsures offer better rates than GIC Re, they will win the business. Previously, reinsurance deals would only be offered to foreign firms if GIC Re turned down the business.

Foreign reinsurers have been lobbying the IRDAI for some time to scrap GIC Re’s first right of refusal. The new changes will come into force from January1, 2019.

The new rules also encourage insurers to maximise retention within the country “subject to adequate diversification of risks”. But this change should mean more business coming the way of foreign players operating in the country.

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

350% rise in London Market brokers using electronic placement

California wildfires will cost insurers $9bn: insurance commissioner

Re/insurers can help solve challenge of ‘chronic climate risk’: Aon

S&P rewards AXIS for strategic changes post Novae deal

Haven Holdings hires former CIMA insurance boss as COO

MarketScout expands in California with new hire

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
8 April 2019   The Insurance Regulatory and Development Authority of India (IRDAI) has granted special approval to 11 cross-border reinsurers (CBR) for the year 2019-20, according to a circular issued on April 04.
Insurance
22 January 2019   India's strong economy and evolving regulatory regime continue to support growth for its insurance and reinsurance sectors, according to a new report by Moody's Investors Service.