General Insurance Corporation of India (GIC) has started reinsuring the life business of Life Insurance Corporation of India (LIC).
Senior GIC officials said the designated national reinsurer has underwritten some life business of LIC from August this year, and had been writing life business from Sri Lanka for the past few months following a treaty it had signed with LIC Sri Lanka.
LIC is understood to have agreed to reinsure up to 10 per cent of its business with GIC. The insurance regulator had earlier also advised private life insurers to reinsure part of their business with GIC.
Today, the GIC has a reinsurance capacity of over Rs 10,000 crore. However, just about Rs 4,000 crore is utilised by the domestic market despite the compulsory 20 per cent cession imposed on non-life insurance players, GIC officials said. Capacity is calculated on the basis of an insurance company
