GIC Re expands to Russia

Moscow based GIC Perestrakhovanie, a fully owned subsidiary of General Insurance Corporation of India (GIC Re), has received a reinsurance licence from the Central Bank of Russia (CBR).

With this, the reinsurer would soon begin operations in the country. CBR has approved the licence, allowing commencement of all activities on a full scale. GIC Re is the first reinsurer in more than a decade to be granted this licence. The company said this Russian subsidiary plans to commence operations soon.

Mr Sanjay Mokashi, CEO of GIC Perestrakhovanie, said, “The market offers encouraging long-term growth for the reinsurance business as it is characterised by low rate of insurance penetration. The overall level of insurance penetration in Russia’s GDP is very low.”

GIC Re, he added, also plans to service the former Soviet Union and Commonwealth of Independent States countries from the Moscow office. Apart from Russia, the India's state-owned reinsurer is also planning to expand to the Latin American market.

In Brazil, GIC Re has been registered as an ‘Eventual Reinsurer’ since January 2009 and is now working to acquire the status of an ‘Admitted Reinsurer’ in that market.

Mr Srivastava added that GIC Re has made inroads in all member nations of BRICS (Brazil, Russia, India, China and South Africa) with the exception of China. GIC Re currently also has branch offices in Dubai, Malaysia, and London.

Source: Asia Insurance Review