After Munich Re another international reinsurance company-Flagstone Reinsurance Holdings Ltd, a global reinsurance company, has now decided to enter into India general insurance market.
The reinsurance company with a focus on specialty, property, property catastrophe and short tail casualty reinsurance is looking at entering the Indian market in the primary insurance business through a local joint venture partner. The company is in talks with several financial institutions in this regard.
Speaking to media persons, Mark Byrne, chairman of the company, said that there were a lot of opportunities in India in primary insurance business. It is an emerging and developing market, which is growing rapidly, but with a low insurance penetration.
“We are in talks with several financial institutions for a possible JV arrangement. We will not wait for the government to increase the FDI limit in insurance business. But, if there are policy changes then it will only be beneficial to us. The company will partner with an institution with a good distribution network. And for the JV we will bring to the table our technical expertise, data processing and underwriting talent. Within one year, the company will enter the insurance business,” he said. Flagstone is likely to invest over $30 million (Rs 128.46 crore) as its capital. He was in the city to inaugurate the new state-of-the-art IT campus of Flagstone Underwriting Support Services (India) Pvt Ltd (FSR-India).
He said, FSR India was incorporated in Hyderabad in October 2005. It was engaged in IT enabled services and knowledge processing services such as proprietary software development, research and development, catastrophe modelling, actuarial analysis, underwriting administration, investment research and technical support for the parent company and its global subsidiaries.