Page 35 - Insurance Times March 2017 Sample

PROFESSIONAL

REINSURERS

IN INDIA

SINCE 1956

A) Introduction: MUNICH RE, SWISS RE, SCOR, XL CATLIN, HANNOVER RE,
REINSURANCE GROUP OF AMERICA- RGA AND LLOYDS. This
From 16th January 2017 IRDAI'S Gazette Notification has list may have new entrants with branches of reinsurers in
implemented Reinsurance Regulations with immediate near future.
effect and licenses are cleared for Branches of Global
Reinsurers as well as Indian Professional Reinsurer ITI with
Thus Indian Insurance Market is all set to be a
a Paid-Up Capital of Rs.5000 MLNS for each. Indian National
Reinsurer GIC Re's Financial Highlights Show Paid Up Capital REINSURANCE HUB OF ASIA AND AFRICA from 2017
of Rs. 4.3 BLNS and Financial Net Worth of Rs. 383 BLNS onwards.
for the year 2015-16
Indian Reinsurance Market with Reinsurance Premium of
US$ 2.50 BLNS in 2016-17 has potential of 15% to 20%
From 1st April 2017, all Renewals of Reinsurance Treaties growth in 2017/18. Agricultural Insurance Premiums under
and Fac Res of all Indian Insurers will have to be placed with
the PMFBY are well set to increase from Rs.36 BLNS in
prescribed priorities with GIC Re, ITI and branches of Global
Reinsurers as licensed reinsurers from 1st January 2017. 2015-16 to Rs.200 BLNS (US$ 2.90 BLN) in the year 2017-
18 with approx. 70% as Reinsurance Premium of Rs.140
Existing participation of Cross Border Reinsurers who do not BLNS - US$ 2.05 BLNS. Thus Reinsurance Premiums will be
have branches in India may be left to get renewals only after around US$ 4 BLNS for all classes. Perhaps this is the right
exhausting placements with all reinsurers in India as under time to review the historical growth of Professional
who were Cross Border Reinsurers but who are now Reinsurers in India so far.
licensed Reinsurers in India:
B) Professional Reinsurers In India:
About the author Life Insurance of Indian Market has great potential to grow
from US$ 56 BLNS in 2014-15 to US$ 70 BLNS by the year
K. L. Naik
2019. Reinsurance requirements generate Reinsurance
Managing Director
Xperitus Insurance Brokers Pvt.Ltd Premium of less than 2% of these premiums for the entire
Indian Market!
The Insurance Times, March 2017 35

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