Global reinsurers may start operations by January: IRDAI

GIC Re, the state-owned company, is the only reinsurer that is fully operational

Insurance Regulatory and Development Authority of India expects global reinsurers, who have applied for a licence, to start operations by early 2017.

“In the Insurance Act, we have allowed foreign re-insurers to open their branches in the country. Many people have approached us,” IRDAI chairman T.S. Vijayan told reporters at the sidelines of seminar organised by industry body Assocham.

“About five-six (companies) have come and I think by January 2017, there should be some players in this market,” Mr. Vijayan said. “We will be taking a decision in October in the next meeting, then they have to bring capital and start working at it.”

Only state-owned reinsurer GIC Re is fully operational within the country. Some of the global re-insurers that have approached the insurance regulator for a licence to open their branches in the country are Munich Re, Swiss Re, SCOR, Hanover Re, and XL Catlin, among others.

After announcing norms on reinsurance regulations in November last year, the insurance regulator gave its initial approval, known as R1 in regulatory parlance, to global players like Munich Re, Hannover from Germany, Swiss Re from Switzerland and French major SCOR, in March this year.

Listing regulations

On the listing of insurance companies, Mr Vijayan said: “In the previous Act itself there was a provision for listing. This was changed. We wanted to have a discussion on this subject, so we brought out a paper and companies have expressed that thing, so let us see how it goes forward.”