Page 56 - India Insurance Report 2023- BIMTECH

44 India Insurance Report - Series II

India to become a Reinsurance Hub by creating complementary linkages among Mumbai (the leading
insurance market seat) and GIFT City (the IFSC seat). India needs integrated and globally benchmarked
regulatory/legal/alternative dispute resolution/tax policies. The IRDAI, as a Single Window Owner
(presenting its own collaborative verticals and also ensuring cross-sector support from Taxation,
Transportation, Company Law, Judiciary, Reserve Bank, Securities Regulator and many others) will
not just help shore up the Global Insurance Centre at Mumbai but will ensure, along with IFSCA, an
Indian reinsurance Global Hub. Establishing relationships with the ‘home regulators’ of the FRBs would
remove most of the current concerns and fears about the FRBs that are currently forcing IRDAI to build
regulatory walls to the detriment of its ‘own entities’ (everyone is paying equal rate of taxes, after
putting up the regulatory capital demanded of them). Lastly, the Hub would be predicated on writing
‘global’ (non-Indian) risks written from India (leaving the reinsurance ‘inward’ at Mumbai). Such
underwriting, however, should not attract any risk capital charge on par with Singapore and Dubai.
Lastly, the regulatory framework for the Reinsurance Hub at the IFSC, GIFT City must proceed on the
basis of Central government (under the powers vested with it per the Insurance Act) entrusting the
IRDAI and the IFSCA to lay the groundwork as a ‘greenfield’ project.

4. Conclusion

An inclusive and fully penetrated insurance and developing its export potential whilst tapping Indian
talent are the two fundamental obligations and mandates for IRDAI and IFSCA. The key to creating
international centers is to make enabling provisions: Regulations, Taxation, Ease of Doing Insurance
Business, grooming of talent etc., leading to Mumbai as a Global Insurance Centre, and IFSC – GIFT
City as a Reinsurance Hub becoming attractive choices for investors. The caveats would include Globally
benchmarked policies and regulations, zero-protectionism to any Indian entity and a level-playing field
for all, developing world-class regulatory capacities at and Single-window accountabilities for IRDAI
and IFSCA, and synergistic and symbiotic relationship between Mumbai and IFSC GIFT City (an
Indian Global Reinsurance Hub at IFSC GIFT City feeding on globally competitive ecosystem at
Mumbai). The (re) insurers should be helped and mandated to close the protection gaps for the Indian
economy/society and help build resilience all across - especially NATCAT, mortality and healthcare
through ESG, risk management and robust insurance solutions to tie-in with India endeavouring to
transform itself to be a developed nation by 2047. The final key would require a global insurance
professional helmsmanship at these centres that has global understanding, a global mindset and is ready
to provide a steady hand on the tiller.