GIC Re set to participate in reinsuring Kudankulam power plant units

Currently, Indian general insurers have to cede at least 5 per cent of their business to GIC Re till FY22

State-owned reinsurer GIC Re will be participating in reinsuring the Rs 43,200-crore insurance coverage of the under-construction units of Kudankulam nuclear power plant. It has quoted a 15 per cent share of the risk, a source said.

But GIC Re’s quote is not the lowest as a global reinsurer has quoted a lower price. Also, there could be a 10 per cent shortfall in commensurate premium for the state-owned reinsurer.

“There is this power plant for which GIC Re had quoted. Somebody else has also quoted and eventually the final rate will prevail and everyone will participate. No reinsurer takes