Page 41 - Insurance Times March 2017 Sample

each in Foreign Exchange without any Indian Joint Venture  Retrocessions of all Reinsurances will be placed abroad
partners. Their operations as Branches in India are called with large volumes of retentions and retentions are also
'Profit Centres' in common usage. to be retroceded by Excess of Loss Treaty Programmes.

With the entry of these Global Reinsurer with RGA will
imply: E) Conclusion:
 5% Obligatory Policy cessions to GIC Re may be Indian Reinsurance Market will become stronger, larger and
discontinued with effect from 1st April 2017. premium will increase with stability and strength. India will
emerge as the Reinsurance Hub of Asia and Africa.
 There will be free competition among GIC Re, ITI (Indian
Pvt Reinsurer) and all Global Reinsurers. This will imply
GIC Re as National Reinsurers to be competitive with Off-shore/On-shore Oil Rigs of ONGC, ESSAR, Reliance, Oil
Refinery at Jamnagar, Space Risks of ISRO projects and
better understanding of Domestic Market.
Cyber Risks in Digital India are potential areas of innovative
 There will be 'Price alignment' and new innovative
expansion.
products are likely to be brought by Global Reinsurers.
 In addition to Paid Up Capital the Global Reinsurers will Cross Border Reinsurers were given UIL- Unique Identification
also retain 50% as huge reserves as their additional Number- after scrutiny of Financial Strength by IRDAI. They
financial strength to operate in India. have suffered losses of Natural Catastrophes an Outward
Reinsurances of Indian Insurers for more than five years upto
 Effective competition will be benefitting all Indian
Insurance Companies whose Reinsurance Treaties will 2016. Now they have minimum scope to continue.
be largely placed in India. This means Reinsurance
Premium outgo in foreign exchange will be minimized Life Reinsurance volume in Indian Market is around 1% of
as major reinsurers including GIC Re are based in India. Life Premium. Its growth has been moderate. Exclusive Life
Reinsurers like the RGA and Global Composite Reinsurers
 All Facultative Reinsurances will be placed within Indian handle a big chunk of Life Reinsurance Premiums.Let us
Market with all these reinsurers. No outward Fac Re hope valuable contributions by Global Reinsurers will bring
of Domestic Market will be needed. higher scope and better opportunities from 2017 onwards.

 All the 4 PSUS - New India, National, Oriental and Let us invent the best of scope, amidst all challenges of
United India also act as reinsurers who write Inward changes!
Foreign Reinsurances. Currently 4 PSUS acting as
Reinsurers do not write Domestic Companies Outward Future is to be INVENTED out of these challenges by
Reinsurance Treaties because of clash of Interest and innovative contributions with the entry of Global Reinsurers
overlapping accumulations. hence force.
Insurance Quiz

1. Which of the two insurance companies have been asked by the Finance Ministry to check into their financial
growth?
2. _______ has been appointed as the new MD and CEO of Bharti AXA General Insurance.
3. Who is the Chief Executive Officer of HDFC Standard Life Insurance Company?
4. The Cabinet has given approval to _____________ which will provide social security to senior citizen.
5. LIC has hiked gratuity for its agent to _________.
6. Who is the new MD of LIC?
7. ______is the new country head of Japan for Swiss Re
The answers of the quiz are from this issue itself. Just go through our journal and you will find the answers. Send your
answers by Email to insurance.kolkata@gmail.com and you can get a chance to win an attractive gift. The gift will be
offered to the person giving all the correct answers. If we receive more than one entry with all correct answers the name
of winner will be drawn from lottery. The last date of receipt of entry is 25th March, 2017.

So Hurry and Submit your entry at the earliest !!!!

The Insurance Times, March 2017 41

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