PRESENTATION

ON
REINSURANCE IN INDIA

Presented by :
Suresh Patel
Sachin Nandha
“Reinsurance is a means by which an
insurance company can protect itself against
the risk of losses with other insurance
companies.”
 Reinsurance
 insurance for insurance companies
 a financial management tool
 always behind the high quality insurance
program or a complex commercial risk of
any good insurer
 Risk management tool
 Contract between insurer and reinsurer
 WHY IS
OBLIGATORY
REINSURANCE NEEDED?
 FUNCTIONS OF REINSURANCE
 Risk transfer
 Income smoothing
 Surplus relief
 Arbitrage
 Reinsurer’s expertise
 Creating a manageable and profitable portfolio of
insured risk
 Managing the cost of capital for an insurance
company
 TYPES OF REINSURANCE
 TREATIES
 Proportional

• Quata share

• Surplus share

 Non – proportional

 Risk attaching basis

 Loss occuring basis
 Claims made basis
 CONTRACTS
 Continuous contract
 Term contract
 RETROCESSION
 What is Retrocession?
 Retrocessionaires.

 Retrocedent
 WHAT
TO
REINSURE?
 WAYS TO REINSURE

 Pooled reinsurance
 Reciprocity
 REINSURANCE INDUSTRY
 Multi billion dollar industry
 Highly complex big business
 Electronic media and technology entered
 29 brokers have been registered to conduct the
reinsurance business in India.
 The total number of insurance and reinsurance
brokers in India currently stands at 195, with
the majority being 100% local
 GIC of India, the indian reinsurer
 GIC of India has been providing reinsurance support
to the Indian market for last 30 years.
 Has developed necessary skills and has qualified
manpower to take care of growing needs of the
expanding Indian industry.
 3rd Asian Reinsurers’ Summit was organised by GIC
of India, in February 2003 at Mumbai
 Reinsurance- Challenges

 Indian market is in absence of the competitive

environment of the international reinsurers at
the local level
 Difference between rates of domestic and
international
 Challenges in policy formulation
 Work on many areas:
- Pooling of financial resources
- Creating Investment opportunities
- Pooling of technical resources
- Joint ventures, alliance and partnership
- Research and developments
- Pooling of information
-Developing standard accounting system for
business
GLOBAL
POSITION
 Top 20 Global P & C Reinsurers
2005 Rank 2004 Rank Group GPW US $ mn Market Share(%)
1 1 Munich Re 17400 12
2 2 Swiss Re 16046 11
3 3 Berkshire Harthway 8039 5
4 5 Lyoyd’s 7953 5
5 4 Hannover Re 6569 4
6 6 GE Insurance Solutions 4469 3
7 8 Transatlantic Holdings 4141 3
8 11 Partner Re 3471 2
9 10 Xl Capital 3421 2
10 9 Everest Re 3411 2
11 7 Converium 3395 2
12 12 ACE 2960 2
13 13 SCOR 2060 1
14 15 Odyssey Re 1954 1
15 14 White mountains Re 1933 1
16 17 Korean Re 1907 1
17 23 Platinum Underwriters 1660 1
18 18 Arch 1657 1
19 16 AXA Re 1571 1
20 19 QBE Re 1480 1
Source : Benfield industry Analysis and Research
 Benfield Reinsurance company
 It is 3rd largest reinsurance company coming to india.
 After Aon and Guy Carpenter
 Benfield’s share of global reinsurance broking
revenues is 16%, while Aon Re’s is at 25% and Guy
Carpenter’s at 22%.
 Benfield has an alliance with Indian firm IRICS