Reinsurance treaties: GIC Re given the right of first refusal
The Insurance Regulatory Authority of India (IRDAI) confirms its preferential policy of reinsurance cession. Starting from January 1, 2019, the Indian insurers have to propose their treaties to the national reinsurer GIC, which has the right of first refusal.
Local insurance companies can only place their treaties with foreign companies established in India for a minimum of three years, after the refusal of GIC.
In recent years, several foreign reinsurers have settled in India, including Munich Re, Swiss Re, SCOR, Hannover Re, RGA, XL, Gen Re and Lloyd's.
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