Business Standard

Indian insurers may have to tackle pricey reinsurance amidst global crises

Impact of global hardening of rates on India difficult to predict, say analysts

Insurance, digital, health cover

The key factors behind rates hardening in the retro market include heightened catastrophe losses and high inflation

Subrata Panda Mumbai
The Indian insurance market in April is likely to feel the heat of higher reinsurance rates that have shot up globally due to adverse weather events, the war in Ukraine and macroeconomic shocks, said experts tracking the trend.

Primary insurers generally transfer a portion of their risk portfolios to reinsurers by paying a premium to reduce the likelihood of having to make a large obligation in the form of a claim.

Globally, primary insurers and reinsurers renew contracts between them in January. Reports say that reinsurance rates this season have touched multi-year highs.

In India, renewals take place in April.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 26 2023 | 7:46 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to