Page 9 - The Insurance Times February 2026

Board of India, stock exchanges and
the National Company Law Tribunal. Overseas travel insurance uptake nearly doubles
post-pandemic
The merger will eliminate the holding
company layer, directly aligning share- Overseas travel insurance has shifted from being an optional add-on to a
holders with the insurance business. near-essential purchase for Indian outbound travellers, with coverage nearly
The insurer said this would reduce doubling over the past six years amid rising medical costs abroad and height-
compliance and administrative costs ened awareness of travel disruptions.
and aligns with the regulatory intent of According to the annual report of the Insurance Regulatory and Develop-
leaner holding structures. ment Authority of India, around 96.7 lakh lives were covered under 27.9 lakh
No cash consideration is involved. overseas travel insurance policies during 2024-25, generating gross premium
Shareholders of the holding company income of Rs 1,267 crore. This represents a 91 per cent increase in lives
will receive equity shares of the insurer covered compared with 2018-19, while premium income rose 67.4 per cent
at an issue price of Rs 375.1 per share, over the same period. The market share of private general insurers increased
to 84 per cent in FY25 from 81 per cent in FY19.
based on an approved exchange ratio.
Post-merger, promoter shareholding Industry executives attribute the growth to a lasting behavioural shift trig-
will rise marginally to 72.2 per cent. gered by the pandemic. Rising healthcare costs overseas, flight disruptions
and visa-linked insurance requirements for destinations such as Schengen
Global reinsurers from countries have reinforced demand. Data from the Ministry of Tourism shows
that Indian outbound departures rose to over 3 crore in 2024, underlining
Spain, UK and Singapore the strong revival in international travel and the steady expansion of travel
line up for GIFT City entry insurance adoption across leisure, business and senior traveller segments.

Several global reinsurance firms from
Spain, the UK and Singapore have ap-
IFSCA regulations allow foreign insurers sheets, replacing the earlier flat sol-
plied to enter India's International Fi- and reinsurers to write offshore insur- vency approach. Riskier portfolios such
nancial Services Centre (IFSC) at GIFT ance and reinsurance business in for- as long-term guarantees, catastrophe-
City, reflecting growing international
eign currency from India. The regula- exposed property and volatile claims
confidence in the country's reinsurance tor has been positioning GIFT City as a businesses will attract higher capital
ecosystem under the International Fi- competitive alternative to hubs such as charges, while conservative and well-
nancial Services Centres Authority. Singapore, London and Dubai. reinsured books will require less capital.

Madrid-based Mapfre Re has applied to Simultaneously, IFRS 17 will change
register as an Insurance Office (IIO) to Insurers to move away how insurers report revenue and prof-
undertake reinsurance business from from one-size-fits-all mod- its by recognising income over the life
GIFT City under the IFSCA (Registration of a policy instead of booking premiums
of Insurance Business) Regulations, els under new capital, ac- upfront. Industry executives said this
2021. Mapfre Re is the global reinsur- counting norms would make persistent under-pricing
ance arm of the MAPFRE Group and Insurers in India are expected to adopt and loss-making products harder to
operates across more than 100 coun- mask.
more disciplined underwriting and pric-
tries. ing strategies as the insurance regula- The impact will vary across segments.
London-based C&C Insurance Group tor transitions to risk-based capital (RBC) Life insurers are expected to reassess
has also filed an application through its norms and implements IFRS 17 (Ind AS guaranteed products, general insurers
IFSC entity, C&C RE IFSC Private Lim- 117) from April 2026, fundamentally may tighten pricing in long-tail and
ited, seeking approval to operate as a reshaping capital allocation and revenue catastrophe-prone lines, and health
reinsurance IIO. In addition, Singapore- recognition across the sector. insurers are likely to focus more on re-
headquartered Partner Reinsurance Under the new RBC framework cleared tail products, cost controls and claims
Asia Pte Ltd, the regional arm of by the Insurance Regulatory and Devel- management. Overall, risk, capital dis-
PartnerRe, has submitted an applica- opment Authority of India, insurers will cipline and transparency are set to
tion to undertake reinsurance business be required to hold capital in proportion become central to strategic decision-
from the IFSC. to the actual risks on their balance making. T

The Insurance Times February 2026 9