GIC Re to go aggressive on overseas expansion from 2013-14

Indian reinsurer General Insurance Corporation of India (GIC Re) will be going aggressive on expanding overseas from the next financial year. Speaking on the sidelines of a summit, A K Roy, chairman and managing director of GIC Re, said that the company had faced some crisis on finances and will be looking to grow in international locations from next year onwards.

Roy further said that they had faced about Rs 3,000 crore in the last three to four years due to the obligatory cession.

This loss is due to the fact that GIC Re had to partake 10 per cent of the loss faced by insurers in policies. Since the underwritten policies on segments such as motor insurance have been facing losses, this has been passed on to GIC Re.

 

According to law, a primary insurer has to place 10 per cent risk with the national reinsurer, GIC Re.