Munich Re today said it would further reduce its exposure to India as entry of new general insurance companies in the market was putting pressure on its premium income.
Senior executives of the reinsurance major said the company had reduced its exposure to the Indian insurance market in the April 2009 renewal and would continue the process.
“The Indian market is not comparable with other markets. Earlier, there were only four general insurance players and now we have so many private players. We think the rates have bottomed out and should harden now,” said Munich Re Senior Account Manager Wolfgang Schrempff.
The Insurance Regulatory and Development Authority has mandated that 10 per cent risk be placed with the national reinsurer, General Insurance Corporation of India.
Insurers in India renew their reinsurance treaty in April. Munich Re’s 60 per cent business comes from January renewals and 40 per cent from April renewals.
The reinsurer said it would open a branch in India when the government allows this.
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