Page 37 - Insurance Times March 2017 Sample

successfully competed with UK from Reinsurance Brokers  Petro-Chemical complexes such as Reliance at Patal
like Willis, Sedgwicks, Greig Fester etc. Ganga, Hindustan Petroleum at Baroda, etc and Asia's
largest oil refinery built by Reliance at Jamnagar.
India Re became a reputed Indian Professional Reinsurer
 Space Research of ISRO and the Launching of
writing Indian and International Reinsurances from U.K.,
Commercial Satellite with Mega Risks Insured in India
Europe, Africa Middle East and Far East.
and Reinsured by GIC and Specialized Western
Reinsurers in USA and Europe.
From 1961-62 onwards Oriental's Indian Guarantee also
started playing Professional Reinsurer's role.
Mega Risks with limits more than Rs. 15000 MLNS Any One
Risk limits came up in the growing economy of India as a
In 1962 Statutory Cessions of 10% of all classes of General result of all these developments.
Insurance were provided for Indian Guarantee and 10%
agreed cessions to India Re become 10% Statutory Cessions. With India Market's Reinsurance Underwriting limits of Rs.
Thus, in all 20% Statutory Cessions were provided to both 4500 MLN PMLS or Rs. 15000 MLN TSI around 100 plus
the Indian Professional Reinsurers.
Mega Risks have come up with limits upto Rs. 50000 MLNS.
These Mega Risks had PEAKS of Large Limits above Indian
These continued upto the end of 1972.
Market overall capacity of Rs 15000 MLN and these were
reinsured by the way of PEAK risks FAC RI XL by GIC.
India Re and Indian Guarantee supported Domestic Market
of General Insurance and conserved Foreign Exchange by By the close of 20th Century Indian Market Reinsurer's
providing Automatic Underwriting Capacity to Indian reputation grew Internationally and the volume of
Insurers. Reinsurance business also was well set to grow fast and with
bottom-line profitability.
India Re provided an Exchange Hall for on the spot
transaction of all facultative reinsurance daily by Indian GIC also became big brother as reinsurer of SAARC
Insurers & Brokers with Reinsurers.
countries.
3) The Era of Nationalization 1st January, 1973 Munich Re, Swiss Re, Victory Re, Mercantile and General
to 31st March, 2001. Re, Franconia Re, Cologne Re, Ingosstrakh etc. were
On the Eve of Nationalization, India won diplomatic and participants on Indian Reinsurers Reinsurance Treaties and
military victory in the 1971 Indo-Pak war which resulted FAC Re Inward Foreign Reinsurances of Indian Reinsurers.
into the liberation of East Pakistan with the birth of the Japan's Insurers like Taisho Marine, Tokio Marine, Kyoei
nation of Bangladesh. Mutual, Toa Re etc also ceded business to GIC.

Indian Insurance Industry and GIC played a vital role in the The Era of Liberalization - N - Globalisation : 1991 onwards
reconstruction of Insurance Industry of Bangladesh after the and Transition of Indian Economy:
war. The economic co-operation between India and The historical developments of Perestroika and Glasnost in
Bangladesh illustrated the maturity of GIC as Reinsurer of USSR, President Gorbachov's steps to dismantle Communist
India with a supportive role to revive friendship and build Experiment and shift towards Capitalism ended the COLD
Reinsurance relationship with the Insurance Industry of WAR ERA. The Berlin wall was broken and a new era of New
Bangladesh. World order began. The trends of Globalisation ended the
First - Second - Third world classifications of world
During this period of 28 years from 1st January, 1973 to 31st economies into Most Developed, Developing and Least
March, 2001 Indian Economy experienced rapid Developed Economies according to the Brandt Line.
developments with far reaching impacts on India's Insurance
and Reinsurance capabilities with Mega Risks emerging as
CAPITALISM was seen as prosperity unequally shared with
under:
unequal talents and skills of people to be most prosperous.
 Oil and Energy Risks of ONGC for Offshore/Onshore COMMUNISM was seen as Poverty equally shared with
exploration of Oil and Gas all over India. restrictive - prohibitive trends to achieve levels of material

 Oil pipelines from Bombay High to Mathura refinery. comforts.

The Insurance Times, March 2017 37

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