Insurance Regulatory and Development Authority of India (Irdai) has granted certificates of registration to foreign re-insurers for opening their branches in India. Officials in the industry estimate that, foreign reinsurers might bring in capital of R2,000-R3,000 crore in India.
Global player such as Munich Re, Swiss Re, SCOR Re, Hannover Re and RGA Life Reinsurance Company of Canada have received certificates of registration from the insurance regulator. As of now, the state-owned GIC Re is the only reinsurer which is fully operational within the country.
“India is an important market for RGA, and we are excited for the opportunity to work more directly with our clients and continue our business growth through a licensed branch office,” said Alain Néemeh, Senior Executive Vice President, Global Life and Health Markets, RGA. “We look forward to expanding the range of services we offer insurers and developing customized reinsurance solutions for our partners throughout the region.”
Insurance players say that, with huge opportunity in India and rapidly growing middle class and a comparatively low insurance density relative to other national economies, India constitutes an attractive market of the future for many re-insurance companies. “They will not only set up branches but also hire people and provide world class solutions to Indian life as well as general insurance companies, said a CEO of leading insurance company.
IRDA had announced reinsurance regulations in November 2015, and many players who were doing their business offshore had applied for the license to set up branch operations in India, which includes the players that has received certificate of registration.
“I am delighted about the opening up of the Indian market for (re)insurers. The establishment of our branch means that we can now be even closer to our customers and respond more attentively to their reinsurance needs”, said Ulrich Wallin, Chief Executive Officer of Hannover Re’s in the press release.
Senior officials in the insurance regulator also added that, few more players are likely to approach us for certificates of registration and another Indian re-insurer ITI Reinsurance has also received R3 license to start their operations.