Global reinsurance companies have arrived in India. But high tax rates and regulatory complexities may hobble their prospects.
February 1, 2017 was a crucial day for Indian insurance: the day foreign reinsurance companies, for the first time, opened branch offices in Mumbai. It was the culmination of a process which began with the passing of the Insurance Laws (Amendment) Bill in March 2015, the same one which raised the cap on foreign insurers’ participation in joint ventures with Indian companies from 26 per cent to 49 per cent. Among its other clauses, it also permitted foreign reinsurers to set up wholly-owned branches in India. Though foreign insurance companies have been in India since 2000 – in joint ventures, with a cap of 26 per cent equity – there were no reinsurance companies among them. The sole Indian reinsurer so far was the publicly owned General Insurance Corporation (GIC Re).
GIC Re, with a turnover of ₹18,435 crore in 2015/16, handles around 52 per cent of the total reinsurance business in the country. The rest is already spread across global reinsurers, but with many of them now expected to set up branches in India, the business is likely to get a big fillip. Following the amendment, the Insurance Regulatory and Development Authority of India (IRDAI), in October 2015, released guidelines on the registration and operation of foreign reinsurers in India – conditions they would have to satisfy to qualify for certification, followed by a three-stage clearance process they would have to undergo. IRDAI has since come out with a number of further clarifications and guidelines.
Denne historien er fra April 23, 2017-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 23, 2017-utgaven av Business Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
"Focus on the challenge of each customer"
SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company
PEDAL ON THE FUTURE
THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY
BREATHE EASY
Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference
The Taste of India in a Glass
FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN
LOOK BEFORE YOU LEAP
IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES
MISSING ADVISORS
INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE
TURNING A CORNER
SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE
REALITY CHECK
INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?
TRUMP'S TRADE TANGO
The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?
"The essence of the Trump administration will be transactional”
Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more