The Insurance Regulatory and Development Authority of India is expected to accept a recommendation to remove General Insurance Corp. of India's first preference over foreign reinsurers in certain business segments such as aviation, marine hull and life, CNBC TV18 reported, citing people familiar with the matter.
India's order of preference gives General Insurance Corp. of India, or GIC Re, an edge over foreign reinsurers, according to the report. The order mandates that an insurer seeking to reinsure a policy must submit it to the Indian reinsurer and three other foreign reinsurers. The insurer is then required to disclose all quotes to GIC Re, which has an option to match the best quote.
It was reported that the suggestions made by a reinsurance expert committee cover segments where GIC Re collected 131.31 billion rupees in premiums. This accounts for 43% of the company's net premium collection, according to the report.
The order will still cover large infrastructure projects, power plants, oil and energy, petrochemical and any specialized, emerging or volatile risks.
GIC Re did not respond to the news outlet's request for comment.
As of May 22, US$1 was equivalent to 68.05 Indian rupees.
