The Insurance Regulatory and Development Authority of India, the countries authority for insurance and reinsurance rules and market access, has approved five global leading global reinsurance firms to launch their branch operations there.
The list of reinsurance firms that have received so-called R3 approval includes the largest four global players, Germany’s Munich Re and Hannover Re, Switzerland’s Swiss Re and France’s SCOR, as well as the U.S player Reinsurance Group of America (RGA).
Other reinsurance companies are set to receive so-called R2 or R1 licenses to operate in India, including XL Catlin, Lloyd’s of London and Warren Buffett’s Gen Re.
According to Business Standard of India, local reinsurer ITI Reinsurance has also received an R2 license and is waiting for approval to begin its operations.
GIC Re is the only reinsurer in India currently, but the country clearly needs greater access to risk capital in order to help its local insurance markets flourish.
The international players set to receive licenses will welcome the chance to expand their portfolios into India, to gain new risk and diversification opportunities.
RGA said that the branch license will help it to better serve its local customers and that alongside Rs 100 crore of capital, the branch already has 45 staff on its payroll.