Page 36 - Insurance Times March 2017 Sample

However, Reinsurance of Life Insurance business in India is After 1995 all countries of the world uniformly follow the
with Minimum Percentage of Gross Direct Life Premium of World Bank, IMF and Bratton Wood Exchange Rate Systems
Rs.3670 BLNS (US$ 52 BLNS). The estimated premium for for all International Trade and Transactions.
2017-18 are Rs. 4683 BLNS or US$ 67 BLNS! But
Reinsurance by life Insurers is around 1% after 5% 2) Evolution of Indian Professional Reinsurers
Obligatory Cessions to GIC Re which may or may not - 1956 to 1972.
continue in near future!
With this background let us review how Indian Professional
Reinsurers evolved and grew with stability and strength
However Non-Life Insurance Premium is Indian Rs.1200
from the 1956 onwards.
BLNS (US$ 17 BLNS) for 2016-17 and is likely to be around
Rs.1450 BLNS (US$ 20.7 BLNS) in 2017-18. Reinsurance Indian Professional Reinsurer - The India Re 1956 to 1972.
Premiums are likely to be 15% - 18% of Gross Non-Life
Premiums. With rapid Economic Developments in India the After independence India's Economy had Industrial
future of Indian Insurance Market appears to be with better
developments and agricultural growth with constructions
prospects for Non-Life Reinsurers to be innovative, creative
of canals, building of dams and Irrigation Projects. With Five
and progressive.
Year Plans,there were all round economic developments.
All these gave rise to new era of Non-Life Insurers and
The future is to be INVENTED rather than PREDICTED.
reinsurers to meet the new challenges of changing times.
The year 2016 is the boundary line between the PAST and
the FUTURE! Life Insurance was nationalized with the creation of the PSU
giant Life Insurance Corporation of India in 1956.
1) Historical Evolution of Professional
In the same year of 1956 all General Insurance Companies
Reinsurers in India 1900 to 1947.
Co-operatively formed the first Indian Professional
At this Historic Period of Greater Significance let us review
Reinsurance Company in India namely India Re. Thus
historical evolution of Professional Reinsurers in India: - Professional Reinsurers complete 60 years in the year 2016.
Background of Indian Market Scenario: Between 1900 AD
and 1947 Non-Life insurers of India managed Reinsurances India Re is the first Indian Professional Reinsurance
with major Global Reinsurers like Munich Re, Swiss Re, Company and had built a global reinsurance portfolio as well
Hannover Re, Cologne Re, Allianz, Mercantile & General as catered to domestic reinsurance Treaties and Facultative
Re etc. All these reinsurances were handled by UK-Europe's
Reinsurances of all classes.
Professional Reinsurance Brokers like Sedgwicks, Willis,
Greig Fester, C T Bowring etc. along with Indian Reinsurance
India Re's shareholders - all Indian Insurers agreed to give
brokers like J.B.Boda, M.B. Boda etc.
10% Agreed Cessions of all classes of General Insurance to
India Re and India Re emerged as a National Reinsurer.
The end of the second World War in 1945 set a new stage:
 The World Bank, the IMF, The Bratton - Wood New India's Mr. A.D. sharraff was the chairman of the
Exchange Rate System governed the International Board and Mr. R.M. Desai (GM) Mr. S.K. Desai (Manager)
Trade and Transactions of Reinsurances. India being a and Mr. Paresh Majumdar (Dy. Manager) played the lead
member of the UNO from inception got involved in all role to make India Re a reputable International Reinsurer
these changes. since early 1960s.
 The COMECON countries of Eastern Europe under USSR In the field of Professional Reinsurance Broking the legendry
did not follow the IMF and Bratton Wood Exchange Grand Father of Indian Reinsurance Broking Mr. J.B.Boda
Rate System. They remained outside UNO'S frame and started his company in July 1943 and became a well-known
followed their own exchange rates equating with reinsurance broker with co-broking links in the London
Russian Rouble. Market with Carpenter Borrowing and later with Guy
 First Indian Professional Reinsurer - India Re wrote Carpenter. Afro-Asian Reinsurance Broking has been the
business from both the western European and main domain of J.B.Boda.
COMECON countries in 'give' and 'take' relationships till
the WTO Treaty of 1st July 1995! With technological expertise and rich experience J.B. Boda

36 The Insurance Times, March 2017

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