One of Warren Buffett’s flagship international reinsurers, Gen Re has received second level, or R2 regulatory approval from the Insurance Regulatory and Development Authority of India (IRDAI) to begin operations in the region.
After new regulatory laws and guidelines were implemented last year to bolster the Indian insurance and reinsurance industry, numerous international players have sought to establish a branch in the region to capitalise on the developments, including Warren Buffett’s Gen Re.
The IRDAI Board met on March 3rd, 2017 to discuss new regulatory licences, and announced that Gen Re has now been granted R2 approval, with the next level of approval (R3) enabling the reinsurance company to establish a branch and begin operations in the country.
According to reports Gen Re is hoping to receive final approval in the near future, with a view of establishing its Indian branch operations before the April 1st, 2017 renewals season.
Buffett’s Gen Re has had a service company in the region since 2006, and already has exposure to the Indian life and health market on an offshore business and, the reinsurer is now looking to access the region’s reinsurance market directly with a local branch.
Global reinsurers Munich Re, Swiss Re, Hannover Re, XL Catlin, Reinsurance Group of America, SCOR, and also the specialist Lloyd’s of London market has already received R3 approval from the IRDAI, with Gen Re expected to join the list of approved reinsurers sooner rather than later.
One of the new guidelines implemented by the IRDAI enabled foreign entities to increase their ownership in joint ventures with Indian companies to 49% and, the regulator announced it’s given a preliminary licence to Fairfax for its second joint venture with an Indian firm, in Oben Insurance.
