The rule giving state-owned Indian reinsurer General Insurance Corporation of India (GIC Re) first picks to reinsurance treaties is set to be reviewed in December of this year.
The announcement is likely to renew foreign reinsurers’ hopes that the Indian playing field will become more level as it moves closer to a competition driven market.
A senior official of a global reinsurance company told Money Control; “Most of the global reinsurers have been in business for several years.
“Hence, we should be at an equal position in terms of procurement of new business or renewal of existing treaties.”
When the rule was first reinstated the government said it would come under review within one year.
In addition to reviewing the first right to refusal rule, the Indian regulator has set up a committee to undertake a comprehensive review of existing reinsurance activities’ framework and reporting requirements.
The committee has an end of August deadline for submitting a report complete with recommendations for the Indian regulator, the Insurance Regulatory and Development Authority of India (IRDAI).
In 2015, the IRDAI introduced the Insurance Laws Amendment Act which allowed foreign firms to enter the India market and set up reinsurance branches.
Global reinsurers operating through an India branch now include Swiss Re, Munich Re, Hannover Re, SCOR Re, RGA (Reinsurance Group of America), XL Insurance and Gen Re.