Supervisory authorities (IRDAI) have paved the way for the establishment of the first private reinsurer. Named ITI Re, the latter has successfully passed the first two tests, R1 and R2, required by IRDAI waiting only for the final license called R3. The last sesame will be achieved as soon as the minimum capital required has been deposited by ITI Re.
Munich Re, Swiss Re, Hannover Re, Scor and RGA are at the same stage with regard to the process of obtaining the authorization required for the opening of their subsidiaries. XL Catlin, along with Lloyd’s have met the requirements of R1 stage. All of these reinsurers are operating in India as offshore companies. They detain a business portfolio estimated at 9 billion INR (132 million USD).
For the time being, the only local reinsurer, GIC Re has a market share of approximately 50% of the reinsurance premiums underwritten in India, that is 3.5 billion USD.
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