reinsurance arrangements

According to a government official, multiple options are under consideration, with any decision on establishing such a facility likely to be taken only after the Strait of Hormuz route reopens.

NEW DELHI: The terrorist attacks in the US would have an adverse impact on Indian general insurance and re-insurance companies, a senior official in Loss Prevention Association of India Ltd, said on Thursday.

The Economic Offences Wing of Mumbai police has arrested two directors of a Jaipur-based firm, which was representing an overseas reinsurance broker, for causing a fraudulent loss of over Rs 200 crore to Tata AIG General Insurance.

Indian life insurance companies are set to hike premiums for their term plans after several reinsurers increased rates for underwriting portfolios of these pure-protection covers. The move comes even as the domestic life companies face higher-than-expected mortality claims due to Covid.

According to IRDA’s annual report for 2010-11, motor insurance and health insurance had high claims ratios and hence were unprofitable for insurers.

Thermal power plants are finding it difficult to obtain reinsurance cover in international markets as global giants tighten their environment, social and governance (ESG) policies. This has created capacity constraints for insuring coal-fired power projects, which are too big for the balance sheets of domestic insurers.

Following India's Operation Sindoor, insurance companies are experiencing a surge in inquiries for war risk insurance. While cargo in transit can still be covered with additional premiums, underwriters are hesitant to provide war risk cover for landed property due to clauses excluding events proximate to war. Reinsurance treaties may be affected during wartime, potentially leading to higher marine cargo insurance rates.

Evidence placed before the parliamentary panel examining the nuclear liability bill makes it clear that with the no-fault cap raised to Rs 1,500 crore, entry of foreign insurers may be inevitable along with inspection of Indian atomic power plants by outside surveyors.

Reliance General Insurance Company (RGIC), a subsidiary of Reliance Capital Ltd, has received multiple show cause notices from the Directorate General of GST Intelligence, amounting to Rs 922.58 crore. According to sources, the company has received four notices from the DGGI demanding GST of Rs 478.84 crore, Rs 359.70 crore, Rs 78.66 crore, and Rs 5.38 crore respectively, on the revenue generated from the services like re-insurance and co-insurance.

India plans to set up a special fund to provide insurance to refineries after European re-insurers refused to cover units that process oil imported from Iran.

India has already objected to the project on the ground that it did not meet some of the conditions stipulated in a river sharing agreement between the two countries.

Mega claims following movie production cancellations and delay in releases last year have burnt insurance companies. But a renewed demand for film insurance could see the industry’s annual premiums grow from the current Rs 150-200 crore to around Rs 300 crore.

The Insurance Regulatory and Development Authority of India (Irdai) is expecting demand for new covers like those for business interruption and cyber risks to rise in the wake of the pandemic and the corresponding shift to work-from-home arrangements.

Global Insurance Brokers, a risk management and insurance provider in India, has been acquired by professional services firm Aon plc. The acquisition will enhance Aon's capabilities in commercial risk, health, and reinsurance markets. Until regulatory approval is obtained, both companies will continue to operate independently.

The government has decided to extend to private refiners the special insurance cover it provides to state-run companies that import crude oil from Iran, a measure it hopes will increase imports from the country and thereby help save foreign exchange.

Health insurers could rack up Covid-related claims of over Rs 10,000 crore during the current fiscal if trends continue according to an analysis by ICICI Securities. As per data, Covid claims have risen to Rs 2,658 crore by end of August from Rs 176 crore in June. General insurers collected Rs 51,637 crore by way of health insurance in FY20.

In a move that will benefit health insurance customers, IRDA has said that companies cannot cancel insurance policies mid-term.

AHMEDABAD: Insurance companies are reluctant to give third party cover for terrorist attacks to garba organisers because no re-insurance facility is available for such covers.

A Nagpur-based businessman has entered into a deal with Life Insurance Corporation (LIC) for an insurance cover of around Rs 77 crore.

Petronet has been able to to achieve financial closure at a very competitive rate of 8% per annum on non-recourse basis.

For specialty underwriters sitting in global reinsurance markets like London, India has a dubious distinction. It ranks second only to Mexico on a list of kidnapping hotspots—ahead of Pakistan, Iraq and Nigeria.

The insurance premium on the Formula 1 Indian Grand Prix this year is likely to decline by 7% as the first two years of the event were accident-free. The premium for the event may be less than Rs 5 crore, said a person aware of the development.

Many life insurance companies have used up their FY22 provisions for Covid-19 claims in the first quarter because of the intensity of the second wave of the pandemic.

Iran on Monday offered oilfields on lucrative terms, expressed willingness to route a gas pipeline through sea to avoid Pakistan and insurance to refiners to prod India into buying more oil from Teheran, but New Delhi did not bite.

India is set to ratify the Vienna convention on supplementary compensation (CSC) for nuclear damage after the nuclear liability hurdle was lifted on Sunday.