The Insurance Regulatory and Development Authority of India (IRDAI) has granted the first reinsurance licence to a private player, Valueattics Reinsurance, backed by Prem Watsa and Kamesh Goyal.
Key Highlights
- Until now, GIC Re (General Insurance Corporation of India), a public-sector entity, was the only domestic reinsurer in India since 1972.
- Liberalisation in 2001 designated GIC Re as the national reinsurer, giving it advantages like the first right of refusal and obligatory cession.
- India hosts 13 Foreign Reinsurance Branches (FRBs), including Munich Re, Swiss Re, and Lloyd’s of London.
What is Reinsurance?
- Reinsurance is essentially “insurance for insurance companies.” It helps insurers manage risk by transferring part of their financial liabilities to reinsurers.
- This ensures financial stability and protection against major claims arising from natural disasters, accidents, and other high-risk events.
(Source: Business Standard)
