New Delhi, April 18: General Insurance Corporation (GIC), the national re-insurer, hopes to garner Rs 10 crore from its life re-insurance business this fiscal.
“We hope to earn at least Rs 10 crore as life re-insurance premium this fiscal. We have approached LIC as well as private insurance companies such as ICICI Prudential Life Insurance, Max New York Life, HDFC Life, Bajaj Allianz and Tata AIG Life Insurance to book business with us in order to stop the outflow of reinsurance funds out of India,” P. Ramanujam, GIC managing director told The Telegraph.
P. P. Deshmukh, head of GIC’s life re-insurance department, said: “LIC has agreed to give us at least 50 per cent of the re-insurance premium, which they give to Swiss Re. We have the potential to retain Indian risks to a large extent due to our voluminous business. Like non-life business, we expect life insurance companies to also cede 20 per cent of their reinsurance business to us.”
“We expect LIC itself to give us a minimum business of Rs 6-7 crore initially. Private insurers are also showing interest; we hope to perform reasonably well,” he added.
However, private life insurers were a little sceptical about doing business with GIC — most of it arising from the fact that it doesn’t have the expertise or the experience in this area.
A senior official with HDFC Life Insurance, a private insurance company, said: “One needs to possess the right kind of technical expertise to get into this business. GIC has not done life re-insurance as yet. Compared with the major foreign players, it is far smaller in terms of capitalisation.”
“At present we only re-insure 4-5 per cent of our total business with worldwide re-insurers like Swiss Re and Munich Re with whom we share a relationship for the last 35 years. They have the best expertise. GIC will have to develop this to get sound business in future,” said Raj Sharma, actuary, Max New York Life Insurance.