Entry of new players likely to intensify competition in reinsurance segment

New private players, including Valueattics Re, Jio Financial Services & Allianz are set to increase competition in India's reinsurance sector. However, experts believe GIC Re's position remains robust

After years of domination in the reinsurance segment as the sole domestic reinsurer, state-owned General Insurance Corporation (GIC Re) is set to see a rise in competition, with Prem Watsa and Kamesh Goyal-backed Valueattics Re receiving approval from the insurance regulator, and Jio Financial Services and Allianz Group tying up to form a 50:50 reinsurance, leveraging Allianz’s existing Allianz Re and Allianz Commercial portfolios and activities in India.

 

Having said that, these developments are unlikely to pose an immediate challenge to GIC Re’s domination, given that the state-owned reinsurer enjoys obligatory cession, and has advantage in the order of preference.