India’s national reinsurer General Insurance Corporation (GIC Re) has moved up two places in world reinsurance rankings following the implementation of the government’s new crop cover scheme. With premium income growing 87% in FY17, the corporation has been driving reinsurance growth in Asia despite China slowing down.
According to AM Best, a ratings agency which specialises in the insurance industry , GIC Re is now the twelfth-largest reinsurer in the world, up from 14th position last year. The corporation has overtaken two companies -US-based Transatlantic and Bermuda-headquartered Everest Re. To break into the global top 10, GIC will need to outgrow Partner Re and Korean Re, which are ranked 11 and 10 this year. These two companies have a top line that is 2.8% and 6.6% more than that of GIC Re.
Reinsurance companies take on the risks from insurance companies. Insurers share their business with reinsurers to reduce pressure on their capital and to hedge against extreme losses.
The Indian market saw quadrupling of agricultural insurance premium. This -together with growth in other segments such as motor and health, and market expansion in general apart from continued focus on geographical diversification through growth in international book -led to a robust 82% higher premium for GIC Re. This contributed to the improvement in ranking.
While India is a highgrowth market, GIC Re does face some challenges this year. According to the latest AM Best report, GIC is likely to continue to grow over the short term, though at a slower pace. This is because more foreign reinsurers have set shop.
Source : The Times Of India
Date : 20-09-2017