top-rated free essay

Reinsurance in India

By sandeepgarg88 Jul 14, 2011 568 Words
REINSURANCE IN INDIA
Until GIC was notified as a National Reinsurer, it was operating as a holding / parent company of the 4 public sector companies, controlling their reinsurance programmes. GIC would receive 20% obligatory cession of each policy written in India. Since deregulation, GIC has assumed the role of the market’s only professional re-insurer. In order to focus on reinsurance, both in India and through its overseas offices and trading partners, GIC has divested itself of any direct business that it wrote prior to November 2000, with the temporary exception of crop insurance. It currently manages Hull Pool on behalf of the market, which receives a cession from writing companies and after a pool protection the business is retro-ceded back to the member companies. GIC also manages the “Terrorism Pool”. 12

REINSURANCE REGULATION
The placement of reinsurance business from tbe Indian market is now governed by Reinsurance Regulations formed by the IRDA. The objective of the regulation is to maximize the retention of premiums within the country and to ensure that IRDA has issued the following instructions: • Placement of 20% of each policy with National Re subject to a monetary limit for each risk for some classes • Inter-company cession between four public sector companies. • Indian Pool for Hull managed by GIC. • The treaty and balance risk after automatic capacity are to be first offered to other insurance companies in the market before offering it to international re-insurers. • Each company is free to arrange its own reinsurance program, which has to be submitted to the IRDA 45 days before commencement.

• Not more than 10% of reinsurance premium to be placed with one re-insurer.

• No re-insurer will have a rating of less than ‘BBB’ from Standard and Poor’s or an equivalent rating from AM Best.

General Insurance Corporation of India
GIC as a national re-insurer is providing useful capacity to all insurance companies.

Break-up of Net Premium Income & Claims
Figures in INR millions Division Indian Reinsurance Foreign Inward Aviation Crop Total Premium 21,996.3 1591.4 244.1 2,880.6 26,712.3 Claims 19,898,2 1498.9 186.1 1367.6 2,950.8

Corporation's Financial Results - (Class Wise)
Figures in INR million Fire Net Premium Net Earned Premium Net claims U/W Profit/loss Class-wise Profit/Loss after investment income 6,349.9 5,070.8 3,562.3 -672.5 -13.7 Miscellaneous 18,286.5 17,46.4 18,078.3 -5,013.7 -544.5 Marine 2,075.9 2,267.5 1,310.2 512.2 1077.5 Total 26,712.3 2,384.7 22,950.8 -5,174.0 519.3

13

GIC as International Re-insurer
Backed by experience of more than three decades in handling the reinsurance requirement of the Indian market, GIC has now placed itself as an effective ‘Reinsurance Partner’ to Afro-Asian countries and also other markets. If offers a capacity of US$ 50 million on facultative risks and US$ 10 million for treaty business.

Capacities offered by GIC for foreign inward business: Other than Aviation Treaty Facultative Aviation Facultative Treaty 5 Mln.* 300,000*** 30 Mln.* PML 4 Mln. 20 Mln. Hull SI 10 Mln. 50 Mln. Liability

Figures in USD Spares

Spares 5 Mln.*

Hull * any one hull; Liability * any one risk; Spares * any one occurance; *** per contract

14

Cite This Document

Related Documents

  • Reinsurance in India

    ...“Reinsurance” Bachelor of Commerce Banking & Insurance Semester VI Submitted In partial fulfillment of the requirements For the Award of Degree of Bachelor of Commerce- Banking & Insurance By Simran Singh Bains 49 KISHINCHAND CHELLARAM COLLEGE 124, Dinshaw Wachha Road, Churchgate, Mumbai-400 020 ...

    Read More
  • Growth of Reinsurance in India

    ...Introduction: Reinsurance means by which an can protect itself against the risk of losses with other insurance companies Individuals and corporations obtain insurance policies to provide protection for various risks (hurricanes, earthquakes, lawsuits, collisions, sickness and death, etc ) Reinsurers, ...

    Read More
  • Reinsurance

    ...Reinsurance functions an I was thinking to start with the history of reinsurance, then to talk about why we need the reinsurance . My thesis consist of 3 parts, in first part I think to say something about Reinsurance itself and history of reinsurance, then also in part one different definitions of Reinsurances then to talk about why we need...

    Read More
  • Reinsurance

    ...7 Types of Reinsurance 1. Facultative Coverage This type of policy protects an insurance provider only for an individual, or a specified risk, or contract. If there are several risks or contracts that needed to be reinsured, each one must be negotiated separately. The reinsurer has all the right to accept or deny a facultative reinsurance pr...

    Read More
  • History of Reinsurance

    ...Incorporated: 1863 NAIC: 52413 Reinsurance Carriers Schweizerische Rückversicherungs-Gesellschaft, known as Swiss Reinsurance Company, or Swiss Re in English-speaking countries, is the oldest professional reinsurance firm in Switzerland and one of the largest reinsurance companies in the world. It is notable for the range of its internatio...

    Read More
  • FDI in India

    ...price rates. 5. Another example of Pepsi, when the Pepsi factory was under its setting up process in the Punjab, the farmers of Punjab protested because the Pepsi authority committed to purchase the potatoes of the farmer but later on the reject and told the farmer that there potatoes are not up to their standards which is used in making up w...

    Read More
  • India

    ...attempts to ensure minimum security to women workers. The first section sets out some of the issues with respect to the feminisation of labour in export-oriented employment, and situates the discussion in the context of the experience of the high-exporting East Asian economies in the 1990s. The evidence pointing to a fall in the share of women i...

    Read More
  • India

    ...India is a large country. Harboring more than 2 billion people, it'll soon break records of overpopulation held by China. The men here are said to be brave, kind and chivalrous. The women considered, traditional, learned and hospitable. The cities here are abundant in whatever they sow and breed stupendous cavalry to charge. The rich bring...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.