Kathmandu. India’s state-run reinsurance company GIC Re has decided to reduce its business on foreign assets and natural disaster risks as the damage caused by climate change continues to rise globally. Instead, the company plans to focus on expanding its Casualty Liability Insurance and Specialty Insurance business.
According to Reuters, India’s move comes at a time when disaster risks are being reassessed in the global reinsurance sector due to increasing losses caused by climate change. Speaking at an event in Mumbai, Hitesh Joshi, President, GIC Rica said that the company will increase the share of the casualty and specialty business in its international portfolio. “Based on our internal analysis, we need to rebalance the risk of natural disasters as far as possible,” Joshi said.
Why is the strategy changing?
Reinsurance companies around the world have been revising their strategies after suffering huge losses due to natural disasters in the past few years. According to the Aon report, in 2024 alone, there was an economic loss of $368 billion due to natural disasters worldwide. That’s 14 percent higher than the annual average since 2000.
“Traditionally low-risk areas like South Africa and Dubai, major floods and rapidly increasing cyclones and storms have proved that the risk pattern has changed,” Joshi said. A recent study by the Swiss Re Institute also found that moderate weather disasters such as floods, wildfires and severe storms accounted for 92 percent of total insured losses in 2025.
New target of international market expansion{
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GIC Relay, which is doing business in 137 countries of the world, is in the fiscal year 2025. It collected a premium of Rs 443 billion in 2016. It has a 25 percent share in the international market.
While reducing risk in foreign property insurance, the company has taken a strategy to expand its international reach. The company aims to increase the share of foreign businesses in the total portfolio to 40 percent in the next 3-5 years. For this, GIC Relay specifically targets Japan, Taiwan, South Korea and parts of Europe.
Specialty and Casualty Attraction{
The reinsurance market is increasingly attracted to specialties (such as maritime, aviation, and cyber risk). According to Guy Carpenter, the sector is getting stronger due to new capital and accumulated profits. The casualty business, on the other hand, hedges against liability risks, so it is largely protected from weather-induced losses.
At present, the global reinsurance sector is in a strong position in terms of capital. According to Artex Risk, global reinsurance capital reached $805 billion at the start of 2026. This gives companies the flexibility to modify their portfolios while managing risk. This move by GIC RICO illustrates how climate change is affecting the way insurance companies do business and international growth.
