Kathmandu. The business of foreign reinsurers in India is booming. In the last one year, the market share of foreign reinsurers in India has reached nearly 50 percent.
According to global data data, total insurance premiums for foreign reinsurers in India increased by 49 per cent in 2024 as compared to the previous year. This is the highest increase since 25.8 percent growth in 2019.
The market share of foreign reinsurers in India is expected to reach 50 per cent in 2025. Rising demand for reinsurance, competitive prices and rethinking of regulatory arrangements have also led to the flourishing of foreign reinsurers’ business in India.
India’s trade growth in four reinsurers has doubled between 2019 and 2023. General Insurance Corporation of India (GIC Re), india’s state-owned reinsurance company, has reduced its share of the reinsurance business from 74.2 per cent in 2019 to 51 per cent in 2023.
According to the global data report, the main reason for the continuous decline in the market share of GIC Ri is the reduction of mandatory discounts and continuous losses in agricultural reinsurance.
In 2018, indian insurance regulator IRDAI amended the provisions related to reinsurance, paving the way for foreign reinsurance companies to open branches to expand their business in the Indian market. – Agency
