Preference to GIC likely to continue in reinsurance business in India

As a rule, GIC Re is given preferential treatment in taking reinsurance risk.

While the Insurance regulator Irdai (Insurance Regulatory and Development Authority of India) is reviewing existing reinsurance norms, the preferential treatment to General Insurance Corporation of India (GIC Re) is likely to continue, according to a top official at Irdai.  

Notably, in December 2018 the Irdai (Re-insurance) Regulations 2018 (the were notified, which came into force on 1st January 2019. The regulations aimed to consolidate the provisions governing reinsurance business in India and also introduced new norms for both life and general reinsurance business.

Subsequently, on request of reinsurers, Irdai had formed a committee seeking to re-examine some of the regulations. One of