Page 40 - Insurance Times Janaury 2021

you do the research, you get better data, a better scenario ahead. I mean, the support that is given by the industry
of what is there. bodies, government, during various times is a little
overwhelming for the non-life industry. The industry is
Q. With this sandbox approach unveiled by the making rapid strides. In the last three-four years, agriculture
regulator and more OTC products being has also become one of the major lines of business. And the
launched, how does reinsurer cope with this turnover of the overall markets would be touching like one
lakh seventy to one lakh eighty thousand crores. I believe
segment as we have very minimal experience in
that we are poised for a decade of rapid growth from 2020
this in this type of product, and how does the
onwards and all the companies insurers, the reinsurers,
reinsurance market cope with it? foreign reinsurers who are also inside India are actually ready
A. It's a very welcome move, actually, if you allow this, there for this kind of a challenge that it will be throwing up for
is a lot of flexibility by the companies, to try out their products the industry and will be making all the necessary changes
and see further how it is responding to the market demand that are required to meet these challenges and to provide
and market requirements. I think reinsurance will not be the worthwhile service to the nation.
failing in its duty to respond to this and whenever these
products are finally accepted by the regulator and being Q. What are the GIC-RE' international expansion
launched by the companies. After the initial experiment, the plans.
re-insurance will always be available. The Indian market is A. We are now almost operating out of 160 countries. We
never short of any kind of capacity as such, for new products. have recently opened our subsidiary in Moscow, the Lloyd's
syndicate which started two years back in London is doing
Q. During this pandemic, a lot of businesses felt the excellently well. We have offices in Dubai and Malaysia and
need for business interruption risk due to pandemic we have a license for Latin America in Brazil. But we think
as normally it is not covered. Is the market or probably this is the time when we will be consolidating our
industry thinking of some sort of cover, which presence in various reinsurance hubs and insurance across the
world. The foreign business is doing reasonably well for us.
would include the business interruption risk?
A. Currently, the product which is available actually is driven At one point of time, the foreign business was contributing
by the fact that if there is any kind of material damage to around 45% of our business and it has come down to 30%
the factory or set up, then the insurance comes into the because of the significant growth in the domestic agriculture
picture. Since in the pandemic that particular condition is portfolio. We are looking forward to taking it around 35 to
not fulfilled, this benefit is not offered. 40% in the intermediate-term. And we plan that we shall
consolidate our business overseas and we shall be able to
But, yes, companies are developing a new product to look reach our clients across the globe from these offices,
into the business interruption side with the pandemic in place subsidiaries and the branches.
and a suitable product as required by the Indian market for
the various types and level of industries, whether it is a small Q. GIC-Re Posted a net profit in the September
or an MSME or it's a large industry, the suitable product is quarter, and in the corresponding period, there
not very far away and will be available to the market and was a loss in the last year. So how did you
reinsurers depending on the requirement, they will be manage this profitability despite the reduction in
playing a crucial role in taking this.
the direct insurance business in this quarter?
A. Actually, we have taken several steps to streamline our
Q. What is your expectation about the insurance
underwriting processes. And also we are looking into the
industry in India going forward? areas that are not making sense for us in the business we
A. I think we are on the cusp of a very large growth going are concentrating on those businesses which are giving us
good results based on the past experience.
We are now almost operating out of A number of steps have been taken by us on the major lines
160 countries. We have recently opened that we write, that is agriculture, property, motor, and
health. And these lines have started to turn around. We
our subsidiary in Moscow, the Lloyd's expect that this focus on the underwriting of profit and the
syndicate which started two years back bottom line approach overall for the company as a whole
will continue. And will we be seeing increasingly better
in London is doing excellently well.
results of GIC Re in the days ahead.
40 The Insurance Times, January 2021