General Insurance Corporation of India (GIC) is likely to register a four fold rise in overseas premium income to $200 million in 2001-02 against the current year's $65 million.
The company has already set up a one-man representative office in Russia, and is in talks with a Chinese company for a joint venture participation in China. GIC has in fact already procured business of $7 million in April from Russia.
"Representative offices in Saudi Arabia will be set up in few months," said chairman D Sengupta. One-man representative offices were set up at London, Osborne and Zedda. Plans are on to tap markets in developing countries where competition is not very pronounced.
Back home, GIC has targeted a Rs 1,000 crore investment income in the current fiscal against Rs 700 crore achieved in 2000-01. GIC's investment in the general money market instruments along with stocks was Rs 22,000 crore in the previous fiscal.
Explaining GIC's investment rationale, Sengupta said, "Since our policies are made annually and our business requires us to do so, there is no reason why we should be a long-term players as far as investments are concerned."
Commenting on the investment front Sengupta said that GIC has more funds than can be invested in the country. Investment avenues and our norms do not allow us to use a major portion of our funds in the equity market. This has forced us to make investments in avenues that are comparatively less remunerative.
Commenting on online cross-border reinsurance, Sengupta said "I do not see any major development in the field at least 10 years from now. Further, with different laws in different countries it is not possible to allow insurance transaction across the border. Further, the role of Irda will be denied in such cases as the development authority will not be able to oversee the transaction and thus control it effectively."
