New Delhi, Oct. 4: In an attempt to scale up domestic business, General Insurance Corporation, the sole national reinsurer, is organising a two-day interactive meet for insurance firms in Goa later this month.
The meeting slated to take place on October 19 and 20 is likely to be attended by the top brass of private and public sector insurance firms and will discuss strategies for developing insurance business.
“We want to further expand operations and try to retain re-insurance business emanting from domestic firms with us. Last year most firms re-insured with us ... we would like to ascertain whether they are happy with our services. We will seek suggestions for improvement,” said GIC managing director P.B. Ramanujam.
“GIC is undoubtedly a financially strong company. They understand the local risk factors better than anyone else and therefore are best equipped to help insurers deal with it,” said Sandeep Bakshi, chief executive officer of ICICI Lombard General Insurance Company.
Bakshi, who attend the meet, said, “GIC is already our key reinsurance partner. Though Munich Re and Swiss Re are the age-old reinsurance partners of ICICI Lombard’s principal, this will not impact our relationship with GIC as the national reinsurer has enough strength and capacity to handle Indian risks.”
Ajit Narain, managing director of Iffco-Tokio General Insurance Company, said, “GIC will have to explain to us their strategic plans before they get more business from us. It is a financially strong reinsurer and we are sure to have fruitful discussions”.
GIC has also started the business of life reinsurance and therefore hopes to get some response from life insurance companies as well.
The national reinsurer has a net worth of Rs 2,293 crore and an asset base of Rs 6,557 crore. The premium collection of GIC grew from 5.9 per cent in 2000-01 to 11.4 per cent in 2001-02. It has a balanced investment portfolio with income from investments at Rs 739 crore.
The total premium income of GIC in 2001-02 was Rs 2,671 crore. Out of this, close to Rs 2,496 crore came from the domestic market, including public and private sector companies.