In a path breaking development for Indian insurance industry, Valueattics Reinsurance Ltd. will become India’s first reinsurer exclusively dedicated to the reinsurance business. Insurance Regulatory and Development Authority of India (IRDAI) recently granted approval and issued the certificate of registration to Valueattics.
This development aims to encourage competition and innovation in the reinsurance sector in India which is historically dominated by state-owned entity, GIC Re, the only reinsurance company operating in India. Designated as the national reinsurer in India, GIC Re has certain privileges, such as the first right of refusal and obligatory cession.
The entry of private players like Valueattics Reinsurance could lead to better pricing, improved products, and enhanced service offerings, benefiting both insurers and policyholders with improved capacity to underwrite risks and support the overall growth of the Indian insurance sector.
Promoted by Canadian businessman Prem Watsa’s FAL Corporation and Kamesh Goyal’s Oben Ventures, Valueattics Re has now received the R2 license from IRDAI, bringing it one step closer to commencing operations with a paid-up capital of INR210 crore($24.3mn).
The Indian market currently has 13 foreign reinsurance branches.