The country’s general insurance sector largely depends upon the London market for their specialised and reinsurance needs. Over $2.5 billion of Indian reinsurance business is transacted in the London market every year.
Some of the major energy insurance and aviation deals involving ONGC, Indian Oil, Air India and Jet Airways are placed in the London reinsurance market every year.
“I don’t think Brexit will impact our operations in any way. Indian economy is on the verge of transformation and we want expertise from the London market to manage risks in various segments,” GIC Re chairman and managing director Alice Vaidyan told PTI.
Ms Vaidyan recently attended an insurance event held in London.
GIC Re has a profitable branch operation in London, where it is planning to set up a syndicate. The company underwrote a gross global premium of Rs 18,436 crore during 2015-16, registering a growth of 21.41 per cent over the previous fiscal year.
Their premium split between the domestic and overseas business during the year was 55 per cent and 45 per cent respectively.
“We are in London since 1920 and have branches here besides reinsurance business of over Rs 1,000 crore in Lloyd’s market. We will continue to operate here and expand our business,” New India Assurance chairman and managing director G Srinivasan said.
According to Mr Srinivasan, the country’s general insurance industry will provide great deal of opportunities to the overseas insurance and reinsurance companies to set up their business here.
General insurance companies will significantly diversify from the current mix dominated by traditional areas like motor, fire and health even though a significant chunk of premium currently remains extremely under penetrated.
Moreover, micro/rural insurance would witness a massive growth aided by government initiatives, he said.