The Insurance Regulatory and Development Authority of India (Irdai) has granted a certificate of registration to Valueattics Reinsurance, allowing it to become the first private sector reinsurer in the country. This development marks a significant step towards fostering competition in the reinsurance sector, previously dominated by the state-owned General Insurance Corporation of India (GIC Re). Valueattics Reinsurance is promoted by Oben Ventures LLP, founded by Go Digit’s Kamesh Goyal, and FAL Corporation, a subsidiary of Canadian billionaire Prem Watsa’s Fairfax Financial Holdings. This achievement is a major milestone for Goyal, who is also a director at Valueattics Reinsurance, and marks the first time that Kamesh Goyal and Fairfax will hold licenses for general insurance, life insurance, and reinsurance businesses in India. The development is expected to boost competition in the reinsurance sector, which has been dominated by GIC Re.
Currently, 12 foreign reinsurance branches operate in India, including Munich Re, Swiss Re, and Lloyd’s of London. The Irdai also announced that Life Insurance Corporation of India, The New India Assurance Company, and General Insurance Corporation of India have been identified as domestic systemically important insurers for FY25. The meeting also reviewed the progress of Bima Sugam, an insurance marketplace, and the formation of Bima Sugam India Federation, an entity formed by insurers to develop an insurance electronic marketplace. This development is expected to promote competition and improve the overall insurance ecosystem in India.