Easier norms for foreign players to up competition in reinsurance market

The sector has seen the entry of nine foreign players as well as a domestic private sector company

The Insurance Regulatory and Development Authority of India (Irdai) recently relaxed the norms for foreign reinsurers who have set up shop in India, a step which is likely to trigger intense competition in the country’s reinsurance space.
 
While Irdai retained the right of first refusal for the state-owned General Insurance Corporation of India (GIC Re), insurance companies will now have to simultaneously seek terms from at least four foreign reinsurance branches. If the Indian reinsurers cannot match the rates quoted by their foreign counterparts, then they stand to lose business.
 
This, experts believe, will drive up competition in