After UK's Llyod's, there are many other top global reinsurers such as Munich Re, Swiss Re, Hannover Re and SCOR evincing interest towards starting operations in India after the passage of the Insurance Bill, increasing FDI limit to 49% from 26% earlier. The new law has further liberalised the insurance market, enabling foreign reinsurers, including Lloyd's, to establish onshore branches.
The move is expected to stimulate the insurance sector and help bring in over Rs. 50,000 crore in fresh capital, according to experts.
Swiss Re is planning to open branch office and has started discussion with the Irda on this.
"We are ready. We would like to see Indian market back to profitability in property and casualty side which will help us doing business in the local market. We are also having a lot of discussion with the Centre and states on what we can do directly with the governments themselves," Swiss Re group chief executive, Michel M Liès said in a statement.
SCOR Global chief executive Victor Peignet said he is encouraged to learn about the new development and, subject to the detailed regulations hope to have a branch office in the country for conducting reinsurance business.
"Yes, we truly believe in the great potential this market has to offer. We have a long-term view on this market, building-up on our values of consistency and continuity in the business relationships with our clients and India remains as a key strategic market for our group," he added.
The country's reinsurance market is currently estimated to be at around Rs. 10,000 crore and it was growing at more than 10% annually. Around 65% of the market share of reinsurance sector is grabbed by the state-run sole reinsurer GIC Re.
As per an estimate, Llyod's alone is doing business to the tune of around Rs. 900 crore in the country. "I welcome the news that India has a new insurance law. This is great news for Lloyd's as the new law allows us to operate in India," Lloyd's chairman John Nelson said.