Gic Seeks Global Expertise For Life Reinsurance

The General Insurance Corporation of India (GIC) is in talks with global life reinsurance companies to acquire the necessary expertise as it prepares to venture into the life reinsurance business.

"We are not looking at any formal tie-ups as global companies will be only too willing to impart the necessary expertise, as they are looking at us as a possible customer," said the top brass.

"Indications are there that we will also act as the reinsurer for life business as well," said GIC assistant general manager P K Mor. Speaking at the one-day seminar Insurance forum 2001 on Friday, Mor said that the Insurance Regulatory and Development Authority (IRDA) will finalise the guidelines for GIC's entry into life reinsurance.

 

GIC, the designated National Reinsurer, is keenly eyeing inward reinsurance business from Afro-Asian countries. Mor said that GIC has targeted these markets to get $400 million business in the next three to five years. "We have already opened our representative office in London, and will open more offices in the targeted areas," he said.

Even as the issue of permitting corporate agents has yet to be approved in parliament, the IRDA has restricted the amount of business a corporate agent can garner from a single organisation or group. Irda member H O Sonig speaking on the role of the intermediary in his keynote address, said that corporate agent shall not have a portfolio of insurance business under which the premium is in excess of 50 per cent of the total premium procured in any year from one organisation or a group.

He further stated that an agent will not be allowed to force a policyholder to terminate the existing policy and to effect a new proposal form within three years from the date of such termination.

A heated debate took place at the forum on the issue of agents not being allowed to represent more than one insurance company. To this, Sonig responded that the advent of broker would resolve the issue, as he would be representing the customer.