No level playing field in the reinsurance segment : GIC chief

Yogesh Lohiya, chairman of the General Insurance Corporation of India (GIC, the 16th largest reinsurance firm in the world, is the largest in India), complains that there’s no level playing field in the reinsurance segment as foreign reinsurance companies are allowed to do business here without much restrictions while domestic players are tightly regulated by the Insurance Regulatory and Development Authority (Irda).

On the contrary, when Indian companies set shop in other countries, they are asked to pay margins and a portion of premium as security.

"All IRDA rules apply to GIC. We have to invest as per IRDA regulations. When foreign reinsurers take the premium, the money goes out. Suppose there’s a claim and the company doesn’t pay. What will you do. You have to go abroad and file a case. It’s a costly affair", the GIC chief said.

Source - financialexpress.com