Reinsurance

Reinsurance 1 9102 hcraM lanruoJ IADRI Publisher Page The theme of the current issue of the journal is ‘Reinsurance: It’s evolution and role in the Indian context’, with several articles on various aspects of the important subject. The Reinsurance landscape in India is undergoing a series of important changes particularly after the passage of the Insurance Laws (Amendment) Act,2015, that facilitated the entry of major global reinsurers into the Indian, market through their branches. Since then, nine Foreign Reinsurance Branches (FRBs) and two recognizes the critical role played by Indian service companies under Lloyd’s India have reinsurers, FRBs, entities operating out of the opened offices in India. GIFT City and Cross Border Reinsurers in supporting Indian insurance market. With India being recognized as the fastest growing current Indian annual reinsurance premium large economy, the insurance market in India is of around Rs. 50,000 crore, there is decent poised for excellent growth in the coming decade. scope of business for all. Changing dynamics Significant mortality/property/health insurance of the market demand a highly motivated and protection gaps, demand for technology based professional work force equipped to handle customized insurance covers, increasing cyber various nuances of reinsurance business and security concerns and increasing incidence of therefore, capacity building in the sector needs catastrophic events arising out of climate risks necessary focus. The objective is to make India are some of the current challenges faced by emerge as a reinsurance hub. Indian insurers. In this context, the reinsurers are expected to extend their technical and ‘To protect the interest of policyholders and to financial capabilities to Indian insurers in secure fair treatment to them’ being the effectively addressing the situation. primary mission of IRDAI, ‘Policyholder protection- The road traversed so far After active consultations with all the and the way forward’ will be the theme of stakeholders, regulatory framework applicable to the next issue of the Journal. reinsurance business is largely consolidated and updated by notification of IRDAI (Reinsurance) Regulations, 2018. The framework duly Dr. Subhash C Khuntia9102 hcraM lanruoJ IADRI üüüüüNNNNN˛˛˛˛˛ÁÁÁÁÁΔΔΔΔΔNNNNN˛˛˛˛˛ NNNNN˛˛˛˛˛yyyyy NNNNN˛˛˛˛˛¬¬¬¬¬™™™™™ ÃÃÃÃÃzzzzz \\\\\ååååå|||||¬¬¬¬¬ NNNNNzzzzz˛˛˛˛˛ üüüüüÀÀÀÀÀoooooÏÏÏÏÏooooo EEEEEÊÊÊÊÊNNNNN˛˛˛˛˛ NNNNN˛˛˛˛˛ÁÁÁÁÁ uuuuuƒƒƒƒƒ ÆÆÆÆÆ (((((sssssyyyyy™™™™™))))) úúúúúÏÏÏÏÏåååå姧§§§yyyyy|||||™™™™™ÁÁÁÁÁ“““““{{{{{::::: ßßßßßÁÁÁÁÁ∫∫∫∫∫oooooyyyyyÆÆÆÆÆ ÃÃÃÃÃÊÊÊÊÊtttttßßßßßÁÁÁÁÁ||||| ™™™™™ııııı GGGGGÃÃÃÃÃNNNNNzzzzz˛˛˛˛˛ uuuuuƒƒƒƒƒNNNNN˛˛˛˛˛ÁÁÁÁÁÃÃÃÃà EEEEEÁÁÁÁÁ{{{{{∫∫∫∫∫ GGGGGÃÃÃÃÃNNNNN˛˛˛˛˛yyyyy ßßßßßÓÓÓÓÓuuuuu™™™™™NNNNN˛˛˛˛˛ÁÁÁÁÁ úúúúú∫∫∫∫∫ ooooosssssÁÁÁÁÁ FFFFFÃÃÃÃà ™™™™™“““““nnnnnƒƒƒƒƒúúúúúÓÓÓÓÓmmmmm||||| uuuuuƒƒƒƒƒ ÆÆÆÆÆ NNNNNzzzzz˛˛˛˛˛ uuuuuƒƒƒƒƒuuuuußßßßßfififififi úúúúú“““““¬¬¬¬¬ÏÏÏÏÏEEEEEÁÁÁÁÁzzzzz NNNNNzzzzz˛˛˛˛˛ ÃÃÃÃÃÊÊÊÊʧ§§§§ÊÊÊÊÊááááá ™™™™™ııııı üüüüüNNNNN˛˛˛˛˛ÁÁÁÁÁΔΔΔΔΔ gggggÁÁÁÁÁ¬¬¬¬¬åååååzzzzzƒƒƒƒƒÁÁÁÁÁ¬¬¬¬¬zzzzz NNNNN˛˛˛˛˛FFFFF||||| EEEEEÁÁÁÁÁ¬¬¬¬¬zzzzzQQQQQ FFFFFÃÃÃÃÙ™™™™ııııı “““““¯¯¯¯¯@@@@@ ßßßßßÁÁÁÁÁ∫∫∫∫∫ooooo ™™™™™ııııı 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SSuubbhhaasshh CC KKhhuunnttiiaa Reinsurance 2Reinsurance 3 9102 hcraM lanruoJ IADRI Inside Inside 7 C A World at Risk: CEO’s CORNER Underinsurance in India - - Shankar Garigiparthy - ( _ ) 9 ISSUE FOCUS Relevance of Life Reinsurance in current Indian context - Sunayana Mahansaria 0 Factors influencing the 12 Reinsurance demand in India: A study - P Kalyani, Prof. S Sreenivasa Murthy Reinsurance regulations: 18 a step forward - N M Behera Re -insurance and Indian 22 reinsurance market - Mr. Riddhi Biswas 27 Reinsurance: The Backbone of Crop Insurance - Ajay Singhal 35 ‘Reinsurance -Its evolution and role in the Indian Context’ - Mr. Sanjay Datta Cyber Insurance and Reinsurance 39 Trends - Neha Anand 42 Climate Change - modelling and pricing challenges - Ms Prachi Ajmera,9102 hcraM lanruoJ IADRI Reinsurance 4Reinsurance 5 9102 hcraM lanruoJ IADRI Going the Distance From the Editor Reinsurance In the classic book ‘AGAINST permitted the establishment current issue of IRDAI THE GODS’ the American of branch offices in India by Journal is on the theme‘ Economist Peter Bernstein foreign companies engaged in Reinsurance- its evolution iterates that the reinsurance business (foreign and role in the Indian revolutionary aspect which reinsurer branches), context’. delineates the boundary expanding the scope and Included under the CEO’s between modern times and choice, for placement by corner is the article titled ‘A the past is mastery of risk. Indian direct insurers. The World at risk - Insurance and reinsurance IRDAI Re-Insurance Underinsurance in India- ’ help in mastering of risk of Regulations 2018, were by Mr. Sankar Garigiparthy, any sorts by the modern brought out with the CEO, Lloyd’s India, which societies. From the risks of objectives of maximizing discusses the plight of launching of satellites in space retention within the country, Underinsurance in India and through rockets to managing developing technical and about Insurance in India in the financial losses in the financial capacities of the the context of the report aftermath of natural insurance companies and also released by Lloyds viz. ‘A catastrophes such as for simplifying the world at risk’. earthquakes or protecting administration of business. Mrs.Sunaayana in her article industries against man-made Given today’s highly ‘Relevance of Life catastrophes such as competitive scenario in the Reinsurance in the current terrorism etc., reinsurance insurance sector, an Indian context’ explains the not only helps insurers by insurance company has to not various benefits and other providing financial capacity only work on adequate pricing value added services offered for sharing of risks but it also of its products but also on by the reinsurers to the life plays a pivotal role in world effective capital and risk insurers in India and how the wide risk management. management. Such being the Life insurance industry by The Insurance Laws central role played by the forging a healthy relation with (Amendment) Act 2015 Reinsurance sector, the the reinsurers can achieve a9102 hcraM lanruoJ IADRI higher reach. Mrs. P. Kalyani an overview of the Challenges’, Ms. Prachi and Prof.S. Sreenivasa reinsurance sector in India. Ajmera stresses upon the Murthy vide their research Importance of reinsurance in importance of having a sound paper titled ‘Factors administration of crop technological disaster influencing the Reinsurance insurance across various management system in place demand in India- A study’ jurisdictions is discussed by to deal with natural submitted their findings that Mr. Ajay Singhal, in his article catastrophes alongside firm size, underwriting risk, ‘Reinsurance- The backbone having a National Nat Cat long tail business and return of Crop Insurance’. Mr. Insurance Program to deal on assets of an insurer Sanjay Datta, in his article with such events. significantly influence its ‘Reinsurance- Its evolution With rapid changes sweeping reinsurance demand. and role in the Indian context’ across the country viz. Mr.N.M. Behera in his article presents an overview of the digitalisation, globalisation, ‘Reinsurance regulations- A evolution of the reinsurance and urbanisation – we are step forward’ has given sector in India and its current seeing an increasing amount insights into the newly framed status. Mrs. Neha Anand in of new risks. Many of these Reinsurance regulations and her article ‘Cyber Insurance are intangible – things like expressed that they are likely and Reinsurance trends’ cyber, intellectual property, to have a positive impact on depicts the ever increasing and reputation risk are the sector in general along complex nature of crime examples. Providing with spinoffs such as growth focusing especially on the risk insurance to these new in foreign exchange and of cyber attacks and how they intangible risks presents national income, assured are a potential threat to the greater challenge to insurers security, employment business operations of any as well as reinsurers. The generation and enhanced company, thus building the insurance and reinsurance technical and financial narrative for the need of industry together needs to capabilities. Mr. Riddhi reinsurance for cyber rise to the occasion to meet Biswas in his article insurance in today’s world.In the expectations of customers ‘Reinsurance and Indian her article ‘Climate change- in this digitally dependent reinsurance market’ presents Modelling and Pricing world. Reinsurance 6Reinsurance 7 9102 hcraM lanruoJ IADRI CEO’s Corner ‘A World at risk: Underinsurance in India’ Shankar Garigiparthy, Country Manager & CEO, Lloyd’s India Underinsurance, or the lack of the world. It reveals that global insurance gap has adequate insurance against there is still a significant gap hardly closed. A 3% decrease risks, can have a significant between the level of over six years, especially at a effect on our economies and insurance needed to cover time when the global economy livelihoods. In the uncertain global risks, and the actual has grown exponentially times we live in, we are facing costs to businesses and (which means more assets at growing threats of natural governments in rebuilding risk), highlights the threat to disasters and new emerging and recovery efforts. In 2018, global economic development threats such as cyber-attacks the value of the global that underinsurance and terrorism. Infrastructure, insurance gap stands at USD presents. public assets and services 162.5 bn – a decrease of 3% Worryingly, India continues must be restored after these from USD 168 bn since to have one of the highest incidents inevitably strike Lloyd’s first underinsurance levels of underinsurance and without insurance, report in 2012. globally, despite progress recovery efforts fall on those There are many important being made in insurance who are already most affected findings from Lloyd’s report. penetration (India’s rate – such as the individuals who The main one being that the slightly increased to 0.9%, have lost their homes, the from 0.7% in 2012). At USD businesses who face •-----• 27 bn, India’s insurance gap disruption, and the accounts for 17% of the global governments that must help Underinsurance, or the gap, an increase from USD them through it. lack of adequate insurance 19.7 bn in 2012. Out of the 43 against risks, can have a Lloyd’s recently released A countries analysed, India significant effect on our world at risk, the second ranked 37th for its overall economies and livelihoods. iteration of its flagship global level of insurance penetration In the uncertain times we underinsurance report, – the same as it received in live in, we are facing undertaken in conjunction 2012. Since the last Lloyd’s growing threats of natural with the Centre for Economics report, India is the only disasters and new and Business Research country that has dropped out emerging threats such as (CEBR). This report looks at of top ten countries with cyber-attacks and non-life insurance levels and highest expected losses per terrorism. insurance penetration data annum as a percentage of ----• for natural catastrophes in • GDP, however, this may w fourty three countries across9102 hcraM lanruoJ IADRI •-----• partly be due to the up to USD $ 608 bn a year – Philippines entering the top the potential for loss of data, The report also highlights a ten because of the devastating revenue and reputation can split between the damage it suffered from be just as destructive as any developing and developed Typhoon Haiyan in 2013. natural disaster yet world. A staggering 98% or With India being the second underinsurance in this area is some USD 160 bn of the most populous country in the particularly high. This will total underinsurance gap world and it being highly soon be the new world order comes from developing exposed to risk from natural in threats to businesses and countries. Besides India, the catastrophes, more must be governments all over the rest of Asia also features done to close this gap. world. significantly among the underinsured. This might The report also highlights a Greater resilience is key for be because the region is split between the developing developing countries like most exposed to risk from and developed world. A India to build business natural disasters compared staggering 98% or some USD confidence which will then to anywhere else in the 160 bn of the total stimulate economic growth. world underinsurance gap comes To address the • • from developing countries. w underinsurance issue in India, Besides India, the rest of Asia our industry must do more to also features significantly man-made climate change. facilitate meaningful among the underinsured. This Asia suffers more floods than partnerships with key might be because the region any other place in the world, stakeholders such as the is most exposed to risk from with more than 600 government. There is no one natural disasters compared to significant floods occurring group that can solve this anywhere else in the world since 2008. India is no problem. Policymakers, (Lloyd’s City Risk Index 2018 stranger to this, with the business leaders, estimates that 54% of Asia Kerala region undergoing communities and insurers Pacific’s risk exposure comes earlier in 2018 what some must work together and from natural disasters alone) officials have called the worst identify where insurance gaps with Bangladesh, Indonesia, flooding in a century – almost exist and accelerate insurance the Philippines and Vietnam 500 dead and missing, at least uptake and understanding. joining India to be among the a million displaced and official Only then can we make any countries with the lowest estimates of USD 5.5 bn in progress in trying to close levels of insurance (as a ratio damage. them. of GDP). While the threat from natural The report also focuses catastrophes is ever Views expressed in this specifically on the increasing increasing, countries also face paper are author’s risk of flood in many parts of a new threat in cybercrime. personal only and not of the affiliating the world, much of which can In 2017, cyber-attacks were organisations be attributed to the impact of estimated to cost businesses Reinsurance 8Reinsurance 9 9102 hcraM lanruoJ IADRI Issue Focus Relevance of Life Reinsurance in current Indian context Sunayana Mahansaria Chief Marketing Actuary – Life and Health, Munich Re India Branch Introduction below indicates the increasing reinsurance support focus on protection products continues to increase. The life reinsurance market in in recent years, as exhibited India has demonstrated Regulatory aspects by expansion in individual strong expansion over the new business sums assured. Until 2013, life insurers were past decade. The market size able to independently decide of life reinsurance in India In addition, life insurers have on the levels and forms of today exceeds INR 2,100 been expanding the scope of their reinsurance crore, representing an protection coverage from arrangements. The Insurance annualized expansion rate of pure mortality, to include Regulatory and Development almost 21% over the past morbidity and health risks, Authority (Life Insurance – decade i.e. between FY 2007- and this trend looks set to Reinsurance) Regulations, 08 and FY 2017-18. (Source: continue. Reinsurers support 2013 encouraged insurers to the industry not only by Public Disclosures) set minimum retention limits providing capacity, but also based on the age of the insurer This growth has been providing international best and year in which the risk was supported by the growth of practices, for example, in introduced. This led to a the direct life insurance framing product boundaries, significant change to the market and by the increase in definitions and exclusions for reinsurance arrangements, sums assured for new these products. Given the requiring insurers to retain business, especially for rapidly changing product most of the risk coming from individual life. The chart landscape, the need for life the lower sums assured levels. Individual New Business Sums Assured - 1,600,000 35% The Draft Insurance - 1• Regulatory Development 1,400,000 30¾, 29½, 1,200,000 - • • 1•I 25% Authority of India (Reinsurance) Regulations, 1,000,000 1• • • • 20¾, 2018 seeks to have the 800,000 • 1• I- 15% reinsurance arrangement to 600,000 •- -• 2% •- 12% • lCI¾, be decided by the life 400,000 insurers, subject to a 200,000 5% minimum sum at risk being Cl¾, retained on an overall FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 portfolio level. The draft also ■ Sums A,9.J red in er ore 6 Grow th rate of Sums A,9.J red9102 hcraM lanruoJ IADRI contains provisions allowing services, which can aid life likely that reinsurers will be for alternate risk transfer insurers to better manage able to assist direct life arrangements on a case to their core business and insurers to optimize their case basis. processes. The benefits capital position and reduce offered by a full service the strain of writing new If finalized in the current reinsurer can therefore be business through offering a form, the new reinsurance divided into two classes: suite of capital solutions. regulations will bring several Direct benefits and Value advantages to life insurers. 4) Reinsurers offer added services. Let us have a capacity to cover mass • Life insurers can bring in detailed look at how market insurance schemes, new products while reinsurers are relevant in the enabling government sharing higher amounts rapidly evolving product and promoted insurance schemes of those risks which they risk landscape of life to be successful in achieving are still not comfortable insurance: deeper insurance penetration with, given lack of Direct benefits: within India. experience in those areas. 1) With rising incomes, 5) Insurers relatively less nuclearisation of families and experienced in writing micro- • Product lines such as consequent increase in insurance schemes can offer micro-insurance or personal liabilities, the this coverage with support of morbidity products, can average sums assured sold in reinsurers uniformly sharing be written by insurers term insurance products have in the risks. in higher volumes with risen, at several life insurers, adequate reinsurance Values added services: to INR 10 million. support at the backend. Reinsurance capacity is 1) Over the past decade, • Reinsurers will also be available to absorb these high a number of new products in more incentivized to sums assured and beyond, so the market have been bring in newer concepts that insurers can write larger brought in by reinsurers as given that the volumes of policies, while value added services to regulations, in the minimizing the volatility support their clients. proposed form, removes impact to their financial Reinsurers bring in not just the requirement for life statements. the design aspects but also insurers to follow an share the international 2) Insurers can offer a order of preference of experiences of how certain wide variety of morbidity cessions. products have fared in other covers which protect against similar markets around the Benefits offered by various critical illnesses and globe. Insurers can leverage reinsurers to life also niche covers protecting this information to make insurers against cancer, cardiac informed decisions when diseases at various severity In India, reinsurers offer a introducing these concepts in levels. This is made possible wide spectrum of risk the Indian market. In the as reinsurers share in the coverage and technical current context of rising risks over the term of the services to direct life insurers. awareness of protection, policies. In addition, insurers In this context, it is important reinsurers assist in setting can use reinsurance risk to recognize that the value optimal technical definitions premium rates as a basis for brought in by reinsurers is and claims processes which setting their own morbidity not purely transactional are essential for successful assumptions. (offering risk pricing) but in product risk management. fact covers a wide spectrum 3) With changes to the 2) Reinsurers share best of technical value added reinsurance regulations, it is Reinsurance 10Reinsurance 11 9102 hcraM lanruoJ IADRI practices with their clients on predictive analytics services offer value added services a range of aspects: it is to help identify malpractices such as medical second common for reinsurers to and deal with the root cause opinions or third party conduct trainings for clients of fraudulent claims. Several administration. These on technical aspects such as insurers have reported an services reach the end underwriting and claims improvement in the customers of direct life management, and to hold experience after insurers at a nominal cost on forums where topics of incorporating these tools account of the larger volumes common interest can be within their risk management sourced through the global discussed and debated. framework. offices of reinsurers. Besides conducting their own 4) Reinsurers have the Many international reinsurers events, reinsurers regularly advantage of being an have set up offices in India, to contribute to industry events independent neutral third be able to better serve the by having their experts speak party which is tuned into the Indian market, with the on global developments or issues facing the industry and mixture of local market local issues of relevance. has the technical capabilities knowledge and international 3) The widespread fraud to deal with these aspects. best practices being shared in the industry (mainly on Reinsurers therefore share with their clients. term insurance products) has information on suspicious The life insurance industry in impacted the entire life claims, prepare industry wide India can and will continue to industry in India over the experience studies, and help grow, and by forging a past five years and is only in setting of standardized healthy relationship with now showing signs of abating. definitions for the industry. reinsurers it will achieve a Reinsurers have worked 5) Reinsurers can bring in higher reach while ensuring a alongside insurers to stem service providers with whom robust risk management frauds, offering a range of they have global tie ups, to framework. W f{AT de> ~C>u tl,tnk ahe>ut tt,estrenBtl, and tt,e ct,ualt~ e>f insurance ,,e>lt~he>lder ,,re>teclie>n tn lndta?? ·D () ~C>u tl,tnk that what ha·s heen de>ne fe>r The article was ,,re>teclinB tt,e interests e>f tt,e ,,C>li~he>l-ders ·since written prior to the notification of IRDAI -ZO ~ears e>f c-peninB e>f tt,e ln·surance market heen (Reinsurance) adect,uate?? !f ne>, tt,en what can he de>ne te> Regulations, 2018. tm,,re>"e tt,e same??? ~ese issues will ~e dlsrussetl hi tl,e tie-xi" issue .,f tt,e !RDA! Je>urnaL Write us ~e>ur \1ew5 e>n tt,e same © lrdaje>urnaf-©lrda.qe>"Jn9102 hcraM lanruoJ IADRI Issue Focus Factors influencing the Reinsurance demand in India: A study P Kalyani Prof. S Sreenivasa Murthy Research Scholar, Department of Management, Osmania University, Dean and Chairman - Hyderabad Placements Institute of Public Enterprise, ICSSR Research Fellow at Institute Hyderabad of Public Enterprise (IPE), Hyderabad Introduction: “Reinsurance demand” by 700,000 million by 2022. In the current competitive non-life insurance companies (Alice Vaidyan (2018))1. insurance scenario, the in India. Further the reinsurers in successful survival of an Current Scenario of India have a domestic insurance company depends Reinsurance industry in •-----• not only on adequate pricing India: of its products to cover costs The Indian reinsurance Current Scenario of but also on capital market is witnessing dynamic Reinsurance industry in management and risk changes with the India: management. Reinsurance is liberalisation of reinsurance The Indian reinsurance one such valuable and regulations. The Regulator market is witnessing multifaceted product which seems to have followed the dynamic changes with the on one hand helps an “domesticating Reinsurance” liberalisation of reinsurance insurance company to model to arrest capital flight regulations. The Regulator effectively hedge against its and to mitigate other risks. seems to have followed the business risks and on the Establishment of Foreign “ d o m e s t i c a t i n g other hand enhances its Reinsurance Branches (FRBs) Reinsurance” model to capital position. The and the setting up of IIOs in arrest capital flight and to “reinsurance demand” by an GIFT IFSC Gujarat is a new mitigate other risks. insurance company is paradigm which will play a Establishment of Foreign primarily motivated by its crucial role in making India a Reinsurance Branches risk bearing ability. As the global reinsurance hub. GIC (FRBs) and the setting up of risk bearing ability of different Re is the National Reinsurer IIOs in GIFT IFSC Gujarat insurance companies depends of India and has enjoyed is a new paradigm which will on its firm specific monopoly in the Indian play a crucial role in making characteristics, the Reinsurance Market till the India a global reinsurance “Reinsurance demand” by year 2016. hub. GIC Re is the National these companies should also Reinsurer of India and has The reinsurance market in vary according to these enjoyed monopoly in the India is currently worth characteristics. Therefore, in Indian Reinsurance Market around INR 300,000 million this study an attempt was till the year 2016. (US$ 47 billion) annually and ----• made to identify the firm • is estimated to grow to INR w specific factors influencing the 1Alice Vaidyan (2018). Alice G Vaidyan CMD GIC Re, ‘Insights - India Rendezvous Update’, Asia Insurance Review, March 2018. Reinsurance 12Reinsurance 13 9102 hcraM lanruoJ IADRI customer base of 58 Public Sector and 17 from the Assets (ROA), Liquidity (LIQ) Insurance companies Private Sector) are selected were taken as Independent comprising of 24 Life for the study, excluding variables and Reinsurance insurance companies (1 in specialised insurers ECGC Demand is taken as Public Sector + 23 in Private and AIC, Seven standalone Dependent Variable. The Sector) and 34 Non-Life health insurance companies choice of Independent insurance companies (6 in the and the private General variables is based on Public Sector + 28 in Private insurance companies which relevance to the Indian Sector)2. have not completed at least insurance scenario and also Review of Literature and two years of operation. availability of data. Panel Research Questions: Initially the sample consisted data regression analysis has of One Ninety Nine been chosen to study the Various studies related to observations, but due to the impact of independent determinants of reinsurance rolling method used in variables on Dependent demand have been reviewed measuring Earnings volatility, variable as the sample and it was found that though Twenty observations related consists of both cross sectional considerable research has to last year of Twenty and time series data. The been devoted to companies and 9 observations panel data set is unbalanced determinants of reinsurance related to first year of nine as all the sample companies demand, the studies have companies which have started were not in operation from been mostly confined to their operations after the FY2006-07 and data for developed insurance markets. year 2006-07 are lost. The some companies in some Little attention has been paid final sample used for panel years was missing. Stata 14.0 to the demand analysis of data regression consists of software was used to run the reinsurance in emerging One Seventy observations panel data regression and markets. Secondly, it was pertaining to these Twenty obtain the results. observed that there is no study focussing on One companies over a period Regression Model: of eleven years from 2006-07 reinsurance demand using The panel data regression to 2016-17. The sample of Indian data. In this context a model developed for this companies is representative question arises that will the study is as follows: of the non-life insurance determinants of reinsurance sector in India since the RD = α + β FS + β IP + demand be the same in India? it i 1 it 2 it market share of gross written β UR + β EV + β LTB + and if so, will the direction and 3 it 4 it 5 it premiums of these companies u the impact of determinants be β PG + β ROA + β LIQ + was more than 90% from 6 it 7 it 8 it it the same as found in earlier FY2006-07 to FY2015-16 studies? In the above equation, and 89% in FY2016-17. The Objective of the Study: Reinsurance demand is data for the sample is The objective of the current collected from Public expressed as sum of intercept study is to identify the factors disclosures and Annual (α), Product of Independent i that influence the reports of the insurance variables and their respective Reinsurance Demand in India. companies. A set of eight firm coefficients (β β ) and the 1, …., 8 Research Methodology: specific factors related to error term (u ). The it General insurance companies coefficient of an independent The focus of the study is on in India i.e., Firm Size (FS), variable measures the change the Reinsurance demand of Investment Performance in dependent variable for a Non-life insurance sector in (IP), Underwriting Risk (UR), unit change in independent India. Out of the 34 Non-life Earnings Volatility (EV), Long variables. i and t denote Insurance companies tail Business (LTB), Premium different companies and years currently operating in India, Growth (PG), Return on of the sample. 21 companies (4 from the 2IRDA Website www.irda.gov.in9102 hcraM lanruoJ IADRI Measurement of Variables: Table 1 explains how the Dependent and Independent variables considered for the regression model are measured. Table 1 –MEASUREMENT OF VARIABLES Variable Measured Through Reinsurance Demand (RD) Premium on Reinsurance Ceded / Gross Written Premium Firm Size (FS) Natural Logarithm of Total Assets Investment Performance (IP) (Net Income from Investments / Total Investment) X 100 Underwriting Risk (UR) Net Claims Incurred / Net Premiums Earned Earnings Volatility (EV) Natural Logarithm of Standard deviation of Profit After Tax for three years on a rolling basis during the sample period Long Tail Business (LTB) Technical Reserves / Net Premium Premium Growth (PG) (Net Premiums Earned in Current year – Net Premiums Earned in Previous year) / Net Premiums Earned in Previous year Return on Assets (ROA) Profit After Tax / Total Assets Liquidity (LIQ) Liquid Assets / Liabilities Source: Compiled by Authors’ based on earlier studies Factors influencing the Descriptive Statistics which shows that the average Reinsurance demand in related to Reinsurance reinsurance ceded by the India - Data Analysis, Demand and Firm non-life insurance companies Results and Discussion: specific factors: across the panel data set was The data analysis, results and Table 2 presents the 32% of the gross written discussion related to factors descriptive statistics for the premium. The standard influencing reinsurance dependent and independent deviation of the dependent demand in India is presented variables used in the study. variable RD is 0.22. below: The mean value of RD is 0.32 Table 2–DESCRIPTIVE STATISTICS Variable N0. of Obs. Mean Standard deviation Min Max RD 199 0.32 0.22 0.06 2.46 FS 199 7.91 1.61 4.55 11.14 IP 199 10.15 3.50 5.61 24.66 UR 199 0.81 0.65 -2.23 8.75 EV 170 3.83 1.41 0.54 7.14 LTB 199 0.98 6.46 -89.35 4.23 PG 190 2.02 15.59 -31.09 173.61 ROA 199 -1.83 9.77 -41.28 22.14 LIQ 199 -0.02 11.33 -156.68 20.92 Source: Authors’ own compilation based on results obtained through Stata 14.0 Reinsurance 14Reinsurance 15 9102 hcraM lanruoJ IADRI Pair wise Correlations of the independent variables. A show that none of the Reinsurance Demand & pairwise correlation of more pairwise correlation Independent Variables than 0.8 and VIF value above coefficients exceed 0.8 and and VIF Values: 10 indicates the presence of largest VIF value is 4.39, The pairwise correlation severe multicollinearity which indicates that there is coefficients and VIF values between the Independent no serious problem of are mainly calculated to check variables (Gujarati (2004))3. multicollinearity. the multicollinearity between The results (see Table 3) TABLE 3 - PAIR WISE CORRELATION COEFFICIENTS RD FS IP UR EV LTB PG ROA LIQ VIF Values RD 1 - FS -0.37 1 3.75 IP -0.22 0.43 1 1.40 UR -0.18 0.05 0.19 1 4.11 EV -0.28 0.77 0.39 0.41 1 2.75 LTB -0.25 0.15 0.08 0.21 0.12 1 4.39 PG 0.01 -0.18 0.10 0.12 -0.06 0.00 1 1.21 ROA -0.10 0.44 -0.03 -0.24 0.18 0.04 -0.37 1 1.94 LIQ -0.37 0.04 0.01 0.01 -0.26 -0.12 -0.02 0.07 1 3.40 Source: Authors’ own compilation based on results obtained through Stata 14.0 Selection of optimum diagnostic tests indicated that indicates that 67.9% of the Panel Data Regression fixed effects model is variation in the reinsurance Model for Reinsurance appropriate. Hence the demand is explained by the Demand: results of fixed effects model eight independent variables Simple pooled OLS are presented and discussed used in the model. More over regression, fixed effects below. the significant p value of the model and random effects Results of Fixed Effects model (Prob >F =0.00) shows model are the different panel Model: that model is fitted well and data regression models The results of the fixed effects the coefficients of generally used. The results model shows that the “r independent variables are not related to the different squared value” is 0.679 which equal to 0. Table 4 – RESULTS OF THE FIXED EFFECTS MODEL AND ACCEPTANCE/ REJECTION OF NULL HYPOTHESIS RD Null Hypothesis Coefficient Standard t - P>|t| Acceptance/ Error Statistic Rejection of Null Hypothesis FS FS of an insurance Company -0.1144 0.0105 -10.9 0.000 Rejected has no influence on its RD IP IP of an insurance Company -0.0017 0.0033 -0.53 0.600 Accepted has no influence on its RD 3 Gujarati (2004). Damodar N. Gujarati, ‘Basic Econometrics’, 4th edition, 2004, The Mc-Graw hill Companies.9102 hcraM lanruoJ IADRI UR UR of an insurance Company 0.1499 0.0586 2.56 0.012 Rejected has no influence on its RD EV EV of an insurance Company 0.0033 0.0062 0.55 0.583 Accepted has no influence on its RD LTB LTB of an insurance Company -0.0094 0.0021 -4.38 0.000 Rejected has no influence on its RD PG PG of an insurance Company -0.0001 0.0003 -0.18 0.855 Accepted has no influence on its RD ROA ROA of an insurance Company 0.0029 0.0009 3.39 0.001 Rejected has no influence on its RD LIQ LIQ of an insurance Company 0.0025 0.0096 0.26 0.793 Accepted has no influence on its RD CONST. - 1.0993 0.0787 13.97 0.000 - Number of Observations: 170 Number of Groups:21 R Squared Value: 0.679 Prob > F = 0.000 Source: Authors’ own compilation based on results obtained through Stata 14.0 Important Findings: positively related to the positive and significant 1. Out of the eight Reinsurance demand. results of Return on assets in independent variables used in Therefore we can conclude this study, the results of the study it is found that four that as the underwriting risk Adams, Hardwick and Zou variables namely Firm size, and return on assets of an (2008)6 exhibited a negative Underwriting risk, Long tail insurance company and significant relationship business and Return on increases its reinsurance with Reinsurance demand. As assets of an insurance demand also increases. against a significant company are significantly 3. On the other hand the relationship of Investment influencing its Reinsurance remaining four variables performance and Liquidity demand. namely Investment with Reinsurance demand in 2. Further it is found that out performance, Earnings Lee and Lee (2012), an of the statistically significant volatility, Premium growth insignificant relation is found variables, Firm size and Long and Liquidity of an insurance between these variables and tail business are negatively company do not show Reinsurance demand in this related to reinsurance statistically significant study. The insignificant demand and hence it is influence on Reinsurance influence of Earnings concluded that as the firm demand of an insurance Volatility and Premium size and long tail business company. Growth on reinsurance proportion of an insurance 4. The findings related to demand of an insurance company increases its Firm size, Long tail business company is consistent with reinsurance demand and Underwriting risk are the findings of Adams, decreases. It is also found consistent with the findings of Hardwick and Zou (2008) and that Underwriting risk and Altuntas, Garven and Rauch Altuntas, Garven and Rauch Return on assets of an (2013)4 and Lee and Lee (2013). insurance company are (2012)5 whereas as against Reinsurance 16Reinsurance 17 9102 hcraM lanruoJ IADRI Conclusion: to dependent and demand in the Indian context. Using unbalanced panel data independent variables of It is suggested that the future set consisting of One Seventy different companies across research in this area can observations pertaining to the sample period and there include macro-economic Twenty One General is a possibility that the factors variables and study their Insurance Companies in India influencing reinsurance impact on reinsurance for a period of eleven years demand may vary across demand using the Indian from 2006-07 to 2016-17, different lines of insurance data. the current study empirically business. However, in spite of identified the firm specific this limitation, this study Views expressed in this factors of an insurance provides some new insights to paper are author’s company that influences its managers of insurance personal only and not of reinsurance demand. The companies in understanding the affiliating study is limited to availability the firm specific factors organisations of only aggregate data related influencing the reinsurance 4 Altuntas, Garven and Rauch (2013). Muhammed Altuntas, Garven and Rauch,‘On The Corporate Demand for Risk Management: Evidence from the global Reinsurance Market’ Journal of Risk and Insurance. June 2013 76(1), pp.197-219 5 Lee and Lee (2012). Hsu-Hua Lee and Chen-Ying Lee, ‘An Analysis of Reinsurance and Firm Performance: Evidence from the Taiwan Property-Liability Insurance Industry’, the Geneva Papers, 2012, 37, (467–484) 6 Adams, Hardwick and Zou (2008). Mike Adams, Philip Hardwick and Hong Zou, ‘Reinsurance and Corporate Taxation in the united kingdom life insurance industry’Journal of Banking and Finance 32 (2008) 101-1159102 hcraM lanruoJ IADRI Issue Focus Reinsurance regulations: a step forward. N M Behera, Office of the Insurance Ombudsman, Bhubaneshwar. •-----• 1.International Forums keep ii. Imposition of Risk on insisting for a free world- International Forums Charges: China wide flow of risk through keep on insisting for a free imposes risk charges world-wide flow of risk open and competitive ranging from 8.7% to through open and reinsurance markets. They 58.8% which is seen to competitive reinsurance advocate that any barrier to be harsh for foreign markets. They advocate free flow would reduce reinsurers. that any barrier to free competition leading to flow would reduce iii. Fixation of minimum reduced customer choice, competition leading to retention: Brazil law higher reinsurance cost, reduced customer choice, mandates to retain increasing domestic higher reinsurance cost, minimum of 50% concentration of risk. increasing domestic business within the 2.In spite of the views taken concentration of risk. country. by the international • ----• iv. Fixing maximum forums, several nations w retrocession by have enacted laws not reinsurers: CIMA, commensurate with the China, South Korea etc. are Francophone Countries, views taken by these some examples of parenting Argentina etc., have forums. Most nations restrictions. Barriers are fixed different consider country first so as implemented in different maximum limits that a to fulfil the interests of their forms in different countries domestic reinsurer can nation. Different countries like- retrocede to a foreign have different interests and i. Imposition of reinsurer. priorities. The priorities are Collateral: USA v. First Right of Refusal: not static but change from mandates 100% Brazil and Philippines time to time and collateral or have necessitated the accordingly the localisation of assets insurers to offer the governments fix new for placement of domestic reinsurers, priorities through new laws. reinsurance business without which the There are many prominent with non-USA insurers cannot offer countries, which have reinsurers (and 50% to foreign reinsurers. implemented protectionist for European vi. Order of Preference: regulations. USA, Canada, reinsurers). Similarly, Malaysia is an Australia, Argentina, Brazil, Canada and Israel too example which Germany, Indonesia, have the collateral implements order of Malaysia, Philippines, system. Reinsurance 18Reinsurance 19 9102 hcraM lanruoJ IADRI •-----• preference. India has and is different from many the similar system Prior to Insurance Law countries. More domestic enacted about two Amendment Act (2015), changes are needed to years ago. India had only GIC Re as the protect its interest and to vii. Compulsory minimum Indian Reinsurer. The compete at the cessions: Many direct insurers were mostly international level. Any countries including dependent on the foreign emerging nation needs to Brazil, CIMA, Russia, reinsurers. Placement with design its laws very Srilanka etc., have GIC Re was limited. Now, carefully. India never mandated that a India has allowed foreign imposed any restriction minimum percentage reinsurers to open their over a foreign reinsurer so of all business or branches in the country. far. reinsurance business 4.The regulation on Order of • • is to be placed with the Preference is a well w national reinsurer or calculated strategy to domestic reinsurers. achieve the dream of viii.First exhaust the jurisdictions. Portugal is making India a reinsurance domestic capacity: an example. hub. On one hand it caters Some countries like xii. Law on denying to its own interests and on Nigeria have r e i n s u r a n c e the other it respects regulations mandating placements with cross international institutions. insurers to place with border reinsurers on Order of preference does foreign reinsurers only certain lines of not restrict foreign after the domestic business: Francophone reinsurers from capacity is exhausted. countries do not allow participating in Indian certain lines of business business. In spite of the ix. No face to face for placement outside. order of preference, today, discussion: There are draconian laws in xiii.There are several other the business going outside countries like restrictions in other India is equal to one third Germany and South forms imposed by of its total reinsurance Korea which ban face several other countries. business. Unlike many other countries mandating to face discussion by 3.The fact remains that the higher ratings, India domestic insurers with international reforms are accepts BBB (of S&P, or foreign reinsurers. put on a back seat, when one equivalent rating of other x. Need of physical office: discusses a country’s rating agencies) rating. It Countries like interest. Had that not been simply says that the foreign Argentina do not allow the case, perhaps we would reinsurers should be from a cross border not have seen the DTAA country and should reinsurers to restrictions from countries have the minimum participate unless they like USA, Germany, Russia, solvency margin as have their offices in China etc. Indian entities required by their home their countries. have to struggle a lot to get countries. India is more an a pie from such foreign xi. Reinsurance credit: open market in the sense countries. It is not easy Many countries either that it has not imposed any sailing for Indian companies do not grant credit or collateral or risk charges so to venture into another grant a lesser credit far. India considers country for business. In for reinsurance placed retention of whole thing contrast, India has laid red with foreign within the country as a risky carpet for all those who tried reinsurers or those in affair. Therefore, it allows to create barriers for it. non-equivalent international players also to India is an emerging nation9102 hcraM lanruoJ IADRI •-----• participate for better with them. Hence, diversification. retention in India for CBRs Prior to Insurance Law 5.Prior to Insurance Law is out of question. Amendment Act (2015), Amendment Act (2015), Therefore, placing business India had only GIC Re as India had only GIC Re as with IRDAI regulated the Indian Reinsurer. The the Indian Reinsurer. The entities is always safer than direct insurers were mostly direct insurers were mostly placing with CBRs. dependent on the foreign dependent on the foreign 7. As far as diversification of reinsurers. Placement with reinsurers. Placement with risk is concerned, India has GIC Re was limited. Now, GIC Re was limited. Now, got about ten top highly India has allowed foreign India has allowed foreign rated and established global reinsurers to open their reinsurers to open their players. IRDAI has granted branches in the country. branches in the country. registration to another new • ----• The scope and choice, for Indian Reinsurer. The w placement by Indian International Financial insurers writing direct Centre (IFSC-SEZ) in than the CBRs. Therefore, insurance business, have Gujarat is emerging. As there is an argument that expanded as India these FRBs and IFSC the domestic players should registered several top offices are allowed to be incentivised. Absence of global reinsurers during the retrocede outside up to incentives to on site entities last couple of years. The 50% and 90% respectively; in India; may give room to Indian insurers are now India has targeted to foreign reinsurers to think able to cede to foreign sufficiently diversify the twice before they propose reinsurers through their risk in the international to open their offices in branches next to their door- arena. Through the order of India. They can play safe steps. It is expected that preference, the from outside by more such foreign players diversification has gone participating from their would open their shops in wider not only among many home countries than India. This would help on-site players but also opening any shop in India. increase capacity and with global players through This was never the retention within the direct reinsurance intention of India. country along with aiding in placements and the increase of foreign retrocession arrangements. 9.As far as freedom and exchange, building of 8.The CBRs are better placed competition is concerned, technical capability and to provide quotes at a lower the Order of Preference has provision of employment. rate than the domestic given freedom to the cedants (customer) to seek 6.The Foreign Reinsurers’ players. The reinsurers in quotations from any Branches (FRBs) and other India need to comply with reinsurer it likes including Indian reinsurers/ insurers the Indian regulatory the CBRs. This encourages are directly regulated by norms (like maintaining free competition and also IRDAI, whereas, the Cross capital, solvency, helps the cedants to Border Reinsurers (CBRs) Investment, actuarial, discover price. Like many are not. The FRBs corporate governance etc). other countries, Indian retrocede to their parent The cross border reinsurers regulations provide for an companies. The FRBs are are not subject to Indian order of preference, which bound to retain minimum laws or the Indian tax prefers the reinsurers on 50% of their domestic regime. They enjoy tax the Indian soil first and then business, in India. advantages as compared to the foreign reinsurers. It However, there is no the Indian players. It is a encourages to utilise the mandate for CRBs to fact that Indian Companies domestic capacity first and maintain any retention in are comparatively in a then to choose the foreign India of the business placed disadvantageous position Reinsurance 20Reinsurance 21 9102 hcraM lanruoJ IADRI reinsurers. The law is restrictions for the CBRs the larger interest of the designed in such a manner and provided lot of industry and the country that it not only helps the incentives to the on- in mind. At this juncture, Indian companies to shore players. The when India invites increase capacity but also countries gradually tried foreign players to open ensures the spread of risks to remove such their offices, order of across the globe. restrictions in a phased preference works like 10. Some argue that the manner, once they blessing in disguise for a order of preference limits reached the point of self brighter future. innovation. The fact sufficiency by becoming 14. The other important remains that even after international reinsurance aspect beyond the introduction of Order of markets. Singapore is one regulatory arena is to Preference in 2016; the such example. Initially it have a favourable tax market has brought in had restricted the foreign regime at least at par many innovative reinsurers by way of with those in other products without any collaterals etc. As a result, countries. This boosts the problem. Rather, it the foreign reinsurers market without losing the helped inflow of gradually opened their income by the process of knowledge and technical offices in Singapore economies of scale. The expertise. gained the advantage of g o v e r n m e n t ’ s being admitted and 11. The experts view that the intervention is necessary preferred reinsurers. regulations offer more towards this. Gradually, when most of balanced, flexible and 15. To conclude, it is believed the players operated liberal regime than those that the order of from Singapore, the in many other countries. preference has been country became self- Sometimes, a minimum working well. It has sufficient through a hub level of restriction works attracted more foreign and finally dispensed with in favour as a blessing in players to open their the restrictions. Today, disguise. It is a win-win offices in India. By the Singapore is an situation for all process, it will help internationally renowned stakeholders. One may increase in capital and reinsurance market. not constrain with short capacity, growth in term results but should 13. While favouring order of foreign exchange and have patience to see a preference, the experts national income, assure long term outcome. underline the fact that security and many stakeholders 12. It is on record that the diversification and including the countries which have generate employment intermediaries primarily built up their markets are and technical expertise. operate to promote their not an overnight Order of preference self interests. Sometimes, outcome. They are should continue until the interest of a successful either because India achieves its goal of particular stakeholder they had imposed becoming a reinsurance may contradict with that restrictions earlier or are hub. of another. It is very still practicing trade difficult to have in place a Views expressed in this barriers. It is seen that regulation that satisfies paper are author’s many could develop their reinsurance markets and all the stakeholders personal only and not of hubs because initially equally. However, the the affiliating they put several regulations should keep organisations9102 hcraM lanruoJ IADRI Issue Focus Reinsurance and Indian reinsurance market Mr. Riddhi Biswas Global Insurance Brokers Pvt. Ltd. •-----• horror and compassion but a ally in apocalypse. Today, there are many cluster of people and It is believed that reinsurance reinsurance companies of company viewed it with a took its birth when Cologne varied size, operating different angle in addition to Re, which wrote the first across various countries looking at with a common reinsurance treaties in 1852, and regions. Below is the list thread of commiseration one decade after the Great of top Twenty reinsurers as enveloping each of us. Their Fire of Hamburg. It is then published by the rating main contemplation was how merged and became a part of agency A.M BEST. The top to support the affected and Gen Re (a subsidiary of slots are occupied by the bring the normal life back. Berkshire Hathaway) in the age old Munich re and They came forward with their 1990s. In 1863 and in 1880, Swiss Re followed by coffer to offer help. These are The Swiss Reinsurance various other markets. none but insurers and Company was established in Another interesting fact is reinsurers and their Zurich, and Munich Re in that the top ten players are underwriters and claims Germany respectively. writing over 70% of the team. Sitting across miles afar total life and non-life whether in London, Dubai or Today, there are many unaffiliated gross Singapore, these typical reinsurance companies of reinsurance premiums and people looked through the varied size, operating across it shows that the market same lens of reinsurance and various countries and regions. dominance is being fulfilled their contractual Below is the list of top 20 continued by a handful of obligation. The examples are reinsurers as published by the players. not too far to seek- whether rating agency A.M BEST. The ----• • it is the Japan’s devastating top slots are occupied by the w earthquake or Thailand floods age old Munich re and Swiss or missing of Malaysian Re followed by various other Back to 26th November, airlines, the ripple effects of markets. Another interesting 2008, the fateful and jinxed which touch the shores across fact is that the top ten players day when terror struck the various frontiers and thus are writing over 70% of the Mumbai and the ordeal they extend stability and total life and non-life ensued, a pall of gloom diversification to the insurers. unaffiliated gross reinsurance descended in the wake of the The significance of premiums and it shows that massive massacre of human reinsurance is therefore sui the market dominance is lives and properties. Most of generis and reinsurers are being continued by a handful us watched it with a sense of truly a ‘friend in need’ and an of players. Reinsurance 22Reinsurance 23 9102 hcraM lanruoJ IADRI Ranking of Reinsurers as per 2017 data: 1 Munich Reinsurance Company $37,821 80.50% 33.50% 114.00% 2 Swiss Re Ltd. $34,775 82.30% 33.10% 115.40% 3 Berkshire Hathaway Inc. $22,740 N/A N/A 116.40% 4 Hannover Rück S.E. $21,314 71.30% 27.80% 99.10% 5 SCOR S.E. $17,718 71.00% 32.70% 103.70% 6 Lloyd’s $14,250 83.80% 33.30% 117.20% 7 Reinsurance Group of America Inc. $10,704 N/A N/A N/A 8 China Reinsurance (Group) Corporation $10,435 62.60% 41.30% 103.90% 9 Great West Lifeco $7,924 N/A N/A N/A 10 Korean Reinsurance Company $6,775 77.70% 18.70% 96.40% 11 General Insurance Corporation of India $6,497 86.30% 17.50% 103.80% 12 PartnerRe Ltd. $5,588 69.80% 29.50% 99.30% 13 Everest Re Group Ltd. $5,115 76.60% 26.50% 103.10% 14 XL Group Ltd. $4,916 79.90% 31.50% 111.30% 15 Transatlantic Holdings, Inc. $4,211 73.10% 33.80% 106.90% 16 MS&AD Insurance Group Holdings, Inc. $3,385 N/A N/A N/A 17 R+V Versicherung AG $3,071 73.80% 25.30% 99.10% 18 MAPFRE RE, Compania de Reaseguros S.A.11 $2,812 73.60% 23.20% 96.80% 19 Renaissance Re Holdings Ltd. $2,798 108.40% 29.60% 137.90% 20 The Toa Reinsurance Company, Limited $2,505 70.10% 26.30% 96.40% gniknaR Name of the Gross Life & Loss ExpenseCombined Reinsurance Company Non-Life Ratios Ratios Ratios Reinsurance (3) (3) (3) Premiums Written(in USD) Source: A.M. Best Indian Reinsurance clocked total RI premium $ shops here along with GIC Re. market: 4.574 billion as depicted in GIC Re has also become one exhibit 2 in detail. Few years amongst the top eleven Indian reinsurance is rapidly back, it was only national players in the world. The becoming a force to be carrier GIC Re present in recent boost in insurance and reckoned with. It is growing India. But once regulations reinsurance in India is largely at a spectacular CAGR of close allowed the entry of foreign attributed to the meteoric rise to 20% in the last five years players in 2015, ten foreign of crop insurance. in tandem with direct reinsurers have opened their insurance. In 2016-17, it had9102 hcraM lanruoJ IADRI Exhibit 2 Total RI Market (USD Million) Data source: IRDAI Annual Report 2016-17 2,374 ~ 2015-16 1,516 .1,529■ 3,044 2014-15 1,411 ■1, 157,I 2,568 2013-14 1,247 ~279■ 2,526 ■ No. of Insurance Companies 100% Govt Owned: 2012-13 3S ■No.of Reinsurance Companies 33 1) GIC Re 2011-12 30 100% Private Owned: 2010-11 1) Ill Re (acquired by Digit) 2009-10 2S Branches of Foreign Reinsurers: ■ RI Placed Outside India ■ GIC Domestic RI ■ Total Domestic RI Market 20 1) Hannover Re 2) Munich Re 1S 3) SCOR 4) Swiss Re 10 5) RGA Life Reinsurance, Canada 6) Lloyd's India 7) XL Reinsurance 8) AXA Re 9) Gen Re 2001-02 2010-11 2016-17 2018-19 10) Allianz Global Corporate & Specialty SE ■ % of Premium Retained in the country Exhibit 3: Data source: IRDAI website ■ % of Premium Placed outside India Challenges of reinsurers: also facilitated ·RT~ The ew a of' ~ nS U ers CUI lf"Vil .El f 'VOU The reinsurance industry in streamlining w~th ~- h ·n ti is k lra sfe r1 (ART) this operation. close to USD 600 billion is Recent such insurance business model. bearing the brunt of many companies in India are challenges. The most teething A well-known regional HDFC-ERGO and L&T among them are the following: reinsurer Trust re is Insurance in general downgraded to B++ by A.M. • Many M&As segment. In a very recent BEST due to its financial • Downward pressure on move in Sri Lanka, Allianz statements. This has raised profitability due to low local company and another some red flags on the risks cession rate, high top five player Janashakthi being taken by the reinsurer. commission, etc Insurance has been Another new set of • Availability of alternative amalgamated by an competition has emerged with capital acquisition by the Allianz a nom de plume ‘ART’. group. And these M&A • Increasing bargaining Catastrophe bond is one of activities are trenchant across power of the insurer and them. Many institutional geographies, thus leading to uptick in the retention by investors have now found less reinsurance them favour through another requirements. • Local regulations alternative route of Due to the intense investment via ‘Cat bond’. When insurance companies competition, the net RI rate Issuance is gaining ground in merge into fewer while in the is becoming abysmally low. past years with investors same country or become a This is either making the betting on an asset class which part of global insurance reinsurer averse to a proposal has less to do with market partner, total reinsurance or taking much less share. fluctuations and offers an order automatically comes Today, in India the fire policy average annual yield of 7%. As down. To rub salt on the rate is so low that insurance per Aon Securities, the total wound, if it is a part of global companies survive by Nat Cat size has touched a new level big insurance group, it no premium. This is adversely high of $ 30 billion in the first longer needs to do affecting their overall treaty half of this year. Insurance reinsurance as its risk can be results. In the exhibit also, it companies thus evade offset with some unrelated is shown that most companies’ reinsurance corridor to policies written in a bouquet combined ratio is crossing transfer their risk. The JV of other policies. Moreover, 100% - a matter of concern for between BlackRock, an asset technological amelioration has the players to sustain their manager, and ACE as an Reinsurance 24Reinsurance 25 9102 hcraM lanruoJ IADRI insurer, is a grim reminder of maintained by the foreign that foreign reinsurers queering the pitch of reinsurers, it may be a book some business reinsurers’ fortune. chimera to become a global outside of the country as name as a reinsurance trade a percentage of total Globally, retention limit is also corridor. business written broadened the result of which is the less capacity being A snapshot of reinsurance The role of reinsurance is sought. Just as an example business in India is as follows: primarily construed as a when D&O was first capital provider. However a • Out of twelve players, introduced to Indian market, closer look shows that its role only GIC Re books a the local market used to be goes deeper than this. It takes substantial 40-45% of hamstrung by capacity along with it required overseas premium constraint and when it comes expertise and technology to • Foreign players hardly to financial institutions’ D&O write a risk. It spawns write business outside of policy, it would be egregious. innovation, new idea and a lot India and if they write, it However today it has made a more to manage a peril. When is limited to Indian sub- tectonic shift and not only cyber liability is just peeping continent at smidgen. does India provide capacity out from its nestle in India and but terms are also very • Their bizarre take of perceived to be a complex competitive that reinsurance foreign business share is proposition, global players do not seem to be predominantly routed reinsurance players lead the interested to support the through retrocession way. It puts forth not only primary markets. where it originates in support but brings other India as depicted in stakeholders who wield a An adage runs by – ‘when exhibit. pivotal role in managing it. It remedy turns out to be worse makes the Indian market than a malady’. It assumes If the foreign reinsurers acquainted with not only the most significance when continue to maintain their importance of an experienced regulations try to lay down a stand and it is widely underwriter but that of a set of regulations to protect or conceived that they will do so, cyber risk manager like safeguard the local interest. it is difficult to move towards Norton, IT manager like IBM This, in turn, runs counter to country’s reverie-journey and cyber extortion advisor proliferation of reinsurance. with reinsurance. like NYA in equal poise. Moreover, local players are Need of the hour more familiar with regulatory Indisputably, reinsurance • Let another additional hassles which necessitate smoothens insurance 10-15 % obligatory them to control the risks on industry by acting as a shock cession go to foreign their books. A case in point absorber and always acts as a players except motor could be taxation treaty vital cog in the wheel of the among countries or local • It will attract other sector, whenever and insurance laws on retention reinsurers to put shops wherever required. However, policy of every risk, etc. here it is not a crystal ball nor a Challenges of India’s • Let stipulations mandate champion of act of sorcery. ambition to be a reinsurance hub: FRB ( Foreign reinsurance branch) majorly accepts overseas business in With the entry of top notch the following manner reinsurers and government’s ambitious plan to make India a reinsurance centre of Overseas Insured ( local insurance Indian Insurers act as a FRB accepts as Mainly Indian interest company in that country reinsurer retrocession gravity, it’s time to shed some abroad) light on it. In the current Exhibit: 4 format and status quo9102 hcraM lanruoJ IADRI Innovative players will hill and showcase agility and insurers to facilitate the continue to show supremacy speed across risk analysis, navigation of unexplored by summoning up their underwriting and capital fields. courage to roll a rock up the dispensation to primary References: • By Riddhi Biswas, January – March 2013, ‘The Insurance Journal’ in the Insurance Institute of India, ‘Insurance Distribution: Challenges and prospects’ • By Riddhi Biswas, April – June 2013, ‘The Insurance Journal’ in the Insurance Institute of India, ‘Innovations in Insurance’ • By Ari Chester,, Sylvain Johansson, et al, September, 2017, Mckinsey: ‘ Global reinsurance: Fit for the future’ retrieved October 27, 2018, from https:// www.mckinsey.com/industries/financial-services/our-insights/global-reinsurance-fit- for-the-future • By Brian C. Schneider, June 27, 2018, Insurance Journal: ‘What’s Ahead for Reinsurance Industry in 2018: Fitch, retrieved October 27, 2018, from https:// www.insurancejournal.com/news/national/2018/06/27/493234.htm • By Oliver Ralph, Insurance Correspondent, September 7, 2018, The Financial Times: ‘Global catastrophe bond market size climbs to a record $30bn’ retrieved October 27, 2018 from https://www.ft.com/content/d62827b2-b1e0-11e8-99ca-68cf89602132 • By William Wilkes, February 19, 2018, The Wall Street Journal: ‘Reinsurers Hit by Catastrophe Losses, Rising Competition’ retrieved October 27, 2018, from https:// www.wsj.com/articles/reinsurers-hit-by-catastrophe-losses-rising-competition- 1519049090 • May 30th 2015, The Economist: ‘Reinsurance- Compacts of god’, retrieved October 21, 2018, from https://www.economist.com/finance-and-economics/2015/05/30/ compacts-of-god?zid=295&ah=0bca374e65f2354d553956ea65f756e0 • The Economic times: ‘Definition of ‘Reinsurance’ retrieved October 27, 2018, from https:/ /economictimes.indiatimes.com/definition/reinsurance • Reinsurance news: ’Top 50 Global Reinsurance Groups’ retrieved October 24, 2018 from https://www.reinsurancene.ws/top-50-reinsurance-groups/ Reinsurance 26Reinsurance 27 9102 hcraM lanruoJ IADRI Issue Focus Reinsurance: The Backbone of Crop Insurance Ajay Singhal Deputy General Manager Agriculture Insurance Company of India Ltd. Background: the Government of India has Insurance Companies, The importance of agriculture introduced market driven Reinsurance Companies and in India needs no scheme, namely, Pradhan Farmers are the main introduction. About 58 % of Mantri Fasal Bima Yojana stakeholders. India’s population is engaged (PMFBY) which is purely on There are 5 main phases in in agriculture. It contributes actuarial/ commercial basis the insurance cycle which about 16% of Gross Domestic and 18 companies (including repeats every cropping Product (GDP) of India. More 5 Government companies) season. All the stakeholders than 80% farmers are small have been empanelled to are involved in the cycle. The and marginal (having less implement the same. Banks and Government act as than 2 ha of land). Most of the Crop Insurance Cycle: facilitators in the process. The agriculture area is rain fed Unlike any other line of cyclical flow diagram of the (60%) and only 40% land is insurance, Crop Insurance is seasonal insurance cycle irrigated. Agriculture, in fact, a multi-stakeholder scheme which keeps repeating every is the most risky enterprise in where Central Government, crop season is as under: India as it is exposed to State Government, Bankers, systematic/ catastrophic Tender risks which are high in both Claims Process by frequency and volume. Settlement State by Insurer Government Considering this, crop (Bidding) insurance has always been an important tool for risk mitigation. Although various crop insurance schemes have been operating in India since Yield Estimation - Crop Notification & CCE Farmer Enrollment 1985, most of them were implemented on administered platform where Government was contributing if the claims were exceeding the premium Transfer Premium of Risk to Payment amount. The sole agency for Reinsurer to Insurer implementing these schemes have been GIC/ AIC. Fig 1: Insurance Cycle under PMFBY Scheme However, from Kharif 2016,9102 hcraM lanruoJ IADRI PMFBY impact on Crop PMFBY (from Rs. 5500 in 2018-19. India is at Insurance in India: crore in 2015-16 to Rs. number three in the world The Gross Premium under 22000 crore in 2016-17). after USA and China in terms Crop Insurance has multiplied The premium in 2017-18 is of Crop Insurance Direct to four times in the very first around Rs. 25000 crore and Premium. year of introduction of likely to be Rs. 28000 crore Table 1: Premium (USD million) Global Agriculture Premium (USD million) 26300 Premium (USD million) USA China India Gross Premium 12000 7900 3600 exchange value taken as USD 1 = INR 70 Need of Reinsurance receipt of upfront subsidy insurance companies cede under Crop Insurance from Government. There is about 75% of risk under As mentioned earlier, the risk hardly any gap in receipt of Quota Share treaties and also size under PMFBY has Funds (Premium Subsidies) buy Stop Loss treaties for increased manifold and and Claims payments. Hence their net retention of about therefore the need of no corpus and very low 25%. Apart from this, the reinsurance is obvious for investment income is Facultative Reinsurance is Insurance Companies to generated here unlike other also taken by some companies accept this line of business lines of insurance. Therefore, for gaps in their normal considering their to be able to underwrite more reinsurance treaties. This underwriting capacity and business, to deal with the makes Crop Insurance as solvency margin. The systemic risk and bring number one line of Insurance selective nature of diversification and as far as reinsurance Cessions participation from riskier area stabilization, reinsurance are concerned, not only in leads to higher risk exposure. requirement is more in crop India but also in the world. Crop Insurance being a insurance than any other line The comparison of crop seasonal business, the of insurance. Insurance/ reinsurance variation in ultimate loss ratio It is pertinent to mention that premium vis-a-vis Non-Life is also very high on annual the extent of reinsurance is Insurance in India is as under: basis and there is delay in highest under PMFBY where Table 2: RI Cessions S.No. 2017-18 All lines of Business Crop Percentage (Non-Life)(A) Insurance(B) (%)C=B/A 1 Gross Direct Premium (India) Rs. 1.5 lakh Crore Rs. 25000 Crore 17% 2 Reinsurance Premium Rs. 38000 crore Rs. 21000 Crore 55% From above, it can be seen How Crop Reinsurance of Indian Regulator (IRDAI) that reinsurance is playing works in India are also to be followed for the most vital role under As per Operational Guidelines reinsurance Placements. The PMFBY and without it the of PMFBY, the insurance Insurance Companies keep insurance Companies would companies are fully about 20-25% net Retention not have been able to responsible for claims and to and cede about 75% to 80% underwrite this volume of make appropriate into Quota share business. reinsurance arrangements. (Proportional) treaties and The Regulations/Instructions also buy Stop Loss Treaty Reinsurance 28Reinsurance 29 9102 hcraM lanruoJ IADRI (Non-Proportional) for their the Crop reinsurance Border reinsures worldwide. Net Retention. The Indian premium and the balance is GIC Re is also protecting their Crop reinsurance is led by placed with Foreign crop Inward business through GIC Re (National Reinsurer) reinsurers who have set up Stop Loss Retrocession with who receive around 50% of branches in India and Cross international reinsurers. Cession Retention 75%-80% 20%-25% Placed through Quota Share Treaty Stop Loss Treaty to Protect Net Retention Treaty Period -April to March Treaty Period -April to March Agriculture Insurance/ Reinsurance Models Worldwide 1. United States of development to produce new participates in the America (USA) and innovative insurance reinsurance of the Crop Agriculture Insurance products. RMA also develops Insurance program through product, namely Multi-Peril educational programming to Special Reinsurance Crop Insurance (MPCI) in the help farmers learn about and Arrangement (SRA), which is USA is administered by a implement market based risk also managed by RMA on Government Body called the management techniques. The behalf of the government. The Federal Crop Insurance RMA works with private insurance company bears the Corporation (FCIC). The sector Approved Insurance portion of the risk of loss up MPCI scheme is heavily Providers (AIPs) to provide to a certain point after which subsidized by the government the public-private it is covered by its Standard through FCIC. The FCIC is partnership (PPP) that make Reinsurance Agreement also responsible for the crop insurance widely (SRA) with the government. setting of the crop insurance available. There is some Quota Share rates which are on an actuarial The Insurance companies are but most of the insurance basis. The distribution of the reinsured, pretty much companies are well enough MPCI product is done exclusively, on a Stop Loss capitalized so as not to require through 18 ‘Agricultural basis. US Government also it from a capital management Insurance Providers’ (AIPs) perspective. who compete on service as the Federal Crop Insurance Program prices are set by the FCIC. Far-mer-s 1.2 million policies in 2014 About 96% of all crop 294 million acres insured $110 billion in loss coverage (total liability) insurance in the USA is MPCI. I Within approximately ♦ Farmers pay a portion 30 days of loss, The remaining 4% of crop of total premium to indemnity is paid to insurance companies, farmer by FCIC insurance business in the USA who forward funds to through insurance FCIC companies' claims is Crop Hail (CH) which is not adjustment and oavment □recess subsidized and with no . 19 P..-ivate lnsur-ance Companies . sell crop insurance policies through 12,500 agents government involvement in . collect and forward premiums to FCIC . determine individual crop losses through 5,000 adjusters it. Unlike MPCI, Hail product . pay claims with funds from FCIC share gains/losses with federal government I is competed for both price ♦ FCIC pays A&O In an annual settlement for each"t a inn sd u ras ne cr ev cic oe m pb ay n ieth s e (A Ic Pr so )p . • 1I I I I e e dre eax ip lcm 1ih ve b e n cu rs o yre s m c e opm sa te n sn y t ft oo r c p p (lo oa om ry sts sip o )(a nrn e oy c f, e aF iv nC e yI s C u) ntd h de e et e rc wr om rm iti in p ne a gs n g ya a n ind + 1 1: I (subsidy to farmer) I On behalf of FCIC, the Risk . Feder-al Cr-op lnsur-ance Cor-por-ation (FCIC) . sets standards and premium rates Management Agency (RMA) . approves new products . subsidizes farmer premiums (62% on average) was created in 1996 to . rp ea iy ms b1 u0 rs0 e% m o ef n d t e toli v ce or my pc ao nst ies st hrough Administrative and Operation (A&O) . shares gains/losses with private companies oversee the crop insurance . reinsures insurance company losses USDA's Risk Management Agency operates the program (employees: 68 in program and to do the DC Headquarters and 399 in field offices) necessary research and Source: CRS, adapt:ed from U.S. Depart:ment: of Agricult:ure and induscry sources.9102 hcraM lanruoJ IADRI 2. Canada to set up the Chinese Agriculture Cooperative As in the USA, Multi Peril Crop Agricultural Reinsurance Federation (NACF). The Insurance (MPCI) in Canada is Pool (CARP) to write 50% of NACF is reinsured on a administered by a single all agricultural reinsurance quota-share basis with 6 local company in each province purchased. reinsurers. Only the liability owned by the provincial 4. South Korea in excess of 110% local government or by a sub In Korea, crop insurance market loss ratio and up to department of the provincial program was introduced in 180% local market loss ratio government. There is no 2001 with the enactment of (150% after 2013) is competition from the private the Crop Disaster Insurance transferred to the sector. MPCI is heavily Act. The crop insurance international reinsurance subsidized by both levels of program is handled by a market. The government government (Federal & public private partnership acts as the reinsurer of last Provincial) and Rates are and is heavily supported by resort for all the liability in actuarially set by the the government. excess of a 180% local market respective provincial company loss ratio (150% after 2013). The crop insurance scheme / government department. In Fig: Crop Insurance in South is managed by the National most provinces crop insurance Korea. was introduced in the 1960’s so the level of information for Ministry of Rr.1 Premium Stibsid,f Government Rei nSJ1J1r a nee Ag riCrtJ1lture. ('5/ L introd111cedl in 2:00 5, rating & administrative Food! and A&O Expense Subs id;"" Q/S introduced in 2017) purposes is supported by Rlil ra I Alfa i rs. AlilITTinistration Pren'lil!lm quality database. Each lndemnny provincial company buys Stop NongHyuip, Korea Loss reinsurance mainly to T1be Unsu~ed Premilnl P&C lnsuran<le protect their crop insurance {Farme.-:s)1 lrndemnity Insu Cr .oa _n ce De- Iv ne sl to itp um t ee nt fund. {Primary) (l<IDI) &. IPrenliu.rnn Samsu11g 3. China F&ll'd's Cat Premilnl IR'.atE! Cala..ilatiom IModel The People’s Insurance Indemnity Company (Group) of China (PICC) has offered crop Loe.ail Private P1'1!f11iil!lm Global insurance in China since the lnsurai111ce Co_•· Korean Re IRei nSJl!lr-ance {Se(l(l)ndlai-y) lndemrni1¥ M\a:nkett 1950s but it was only in 2007 that the central government ~ 6dbmeslic iinsurBs: Samsung, !Cvrngbl!I, l-tj.lllndai, t:iB, Meritzand Harnwha started a subsidized crop insurance pilot for both crop Source: Agriculture Insurance in Asia. Challenges in developing markets. and livestock. This has now Peter Book. Allianz Re Singapore. August 2017 grown into a USD 7 bn industry 5. Spain the pool. Thus ‘risk’ is and now covers forestry in One of the key characteristics assumed in a ‘co-insurance’ addition to crop and livestock. of the Spanish Agricultural regime. The commercially Today PICC is responsible for Insurance System was the run but publicly owned 50% of all crop insurance with setting up of a Pool in which Insurance Compensation the other 50% offered by all the insurance companies Consortium (CCS) is a Twelve local and national offering agricultural member of the pool with a insurance companies. All these protection would operate. 10% of participation. companies buy Quota share and stop Loss reinsurance The Pool is managed by a Agroseguro acts as reinsurer protection in the international service company, for the Pool. There is no price reinsurance market. However, Agroseguro (SA). There are / indemnity competition in 2016 the Chinese now Twenty Nine national & between members. government took the decision foreign private companies in Competition between Reinsurance 30Reinsurance 31 9102 hcraM lanruoJ IADRI members is purely on service. each member has in the Pool. ensure the transparency and judicial safety of the system. As a Pool manager, Agro There are two further control In reinsuring AgroSeguro, Seguro has the responsibility mechanisms to ensure CCS offers (Stop Loss) of pricing the products, premium rates are set protection at two different drafting all insurance correctly by Agroseguro and rates dependent upon the contracts and distribution of member company needs of the member all contracts through the management expenses are company. Those requiring a network of member controlled appropriately. One ‘special’ financial protection, insurance companies. On is through oversight from the (for whatever reason), pay a behalf of the Pool members, Economy Ministry, who higher rate than those who do they oversee all loss regulate the whole insurance not. Pool members are adjustment and handle claims sector, and the other is required to approach CCS first settlements. Agroseguro is through oversight from the for reinsurance coverage. Pool also assigned for assumption Farmers Union and ENESA. members also buy Stop Loss reinsurance for the coverage of all agricultural risk from CCS acts as reinsurer of the they need beyond that Pool members and Pool through an annually provided by CCS at a standard distribution of all assumed negotiated contract. CCS also adjustable rate. risk back to Pool members in has oversight of all loss adjustments, in order to The Agroseguro framework is accordance with the share as under: AGRICULTURE PRIVATE GOVERNMENT SECTOR SECTOR MINISTRY OF MINISTRY OF AGRIWLT URE, FOOD ECONOMY AND AND ENVIRONMENT COMPETTTIVITY J l National ... - Agency for Consorcio . Agriculture Compensacion Agriculture Agroseguro Insurance • de Seguros Trade Unions • (ENESA) (CCS) ~ The following is the system’s general operating pattern: Premium subsidised by the State (ENESA) and regional governments Insurance Reinsurance Contract Con•tra ct ♦ Premiums Premiums c.c.s. E.arme_r_$. and L· ves_tock fart1Ull.$. Rensurance Excess of Financial protection in.s.u.red Claims loss of the system CCS: 100/o9102 hcraM lanruoJ IADRI Turkey Turkey’s agricultural for transferring risk are As per the “Agricultural insurance sector was devised. policed and it ensures Insurance Act” passed in By law, all agricultural risks centralized payment system 2005, an Agricultural insured are to be transferred for loss indemnification. Insurance System was to the pool (TARSIM) so as to Insurance companies can established wherein the allow for a standardized optionally take a Agricultural Insurance Pool agricultural insurance retrocessional share from it. (TARSIM) with public- product across the country, Broad framework of private partnerships in which means the conditions TARSIM is depicted as under: Government Subsidy ..R t I e rosess10~ Insurance TARSIM !Reinsurance Companies (Pool) Companies I Reinsurance Premiums Agreement I Indemnifications i Farmers Premiums Entire premium is collected participation). Where cover provided by domestic by the individual insurance retrocession does not take and international reinsurance companies, and the total risk place, reinsurance cover markets is insufficient, the is transferred to the Pool. through domestic and Government will provide The Pool is authorized to international reinsurance Catastrophe Stop Loss retrocede risks to insurance companies is required. As a protection. companies (voluntarily last resort, if the reinsurance Various Risk Transfer/Financing Alternatives ------■ -- - - - --■ --- ► Ways to increase Underwriting Capacity Other than the traditional Alternative Risk Transfer certain risks the transactions insurance and Reinsurance, (ART): aim to cover. ART solutions there are alternative risks Alternative risk transfer, also are tailor-made risk financing transfer techniques which are known as ART, enables solutions and a key response being explored. The two companies to transfer risks to to some of the limitations of solutions used are Alternative another party or to capital the traditional insurance risk transfer and Catastrophe markets investors and thus market and can help in three Bonds receive protection against significant ways: Reinsurance 32Reinsurance 33 9102 hcraM lanruoJ IADRI 1) to self-finance risks which investors. These bonds are moral hazard issues( both are not typically covered inherently risky, generally BB from Insured and Insurer by a traditional insurance and usually have maturities side) in the data policy, less than three years. If no recorded. 2) to transfer non- catastrophe occurred, the • Anti-Selection and Moral traditional risks and insurance company would pay Hazards: As the business finally a coupon to the investors. comes from riskier 3) to access alternative However, if a catastrophe did locations. occur, then the principal forms of capital which • Data/Statistics: Insurers would be forgiven and the introduces competition share the provisional insurance company would use and helps drive business statistics with this money to pay their claim- competitive pricing the Reinsurers from time holders. Investors include The main areas of alternative to time. However, the hedge funds, catastrophe- risk transfer include risk actual business statistics oriented funds, and asset securitization through reaches the Reinsurers managers. They are often catastrophe bonds, insurance- only after the claims are structured as floating-rate linked securities and finalized. bonds whose principal is lost reinsurance sidecars, trading • Cash Flow: The premium if specified trigger conditions of risk through industry loss subsidy share receipt is are met. If triggered the warranties and weather usually delayed by the principal is paid to the derivative contracts and governments which sponsor. The triggers are transforming capital market further affect the release linked to major natural risks into reinsurance of Reinsurance premium catastrophes. Catastrophe through transformer vehicles. to the reinsurers. This bonds are typically used by Other techniques sometimes delay has an impact in the insurers as an alternative to considered part of alternative cash-flow of the traditional catastrophe risk transfer include Captive Reinsures. reinsurance. insurance companies, life Need of the Hour: Crop Major Challenges faced insurance linked Insurance Pool in India by Crop Reinsurers in securitization, longevity risk India • Individual companies transfer and other alternative have limited ability to risk financing techniques. • Pricing: The premium retain. Risk -Pooling rates are to be charged on Catastrophe Bonds (Cat enables greater local actuarial calculations/ Bonds) retention. It enhances the methodology. However Catastrophe bonds (also underwriting capacity. fierce competition among known as cat bonds) are risk- insurers result in • A Pool could avoid linked securities that transfer premium rates that are inefficiencies in bidding a specified set of risks from a not satisfactory to the Process in each State. sponsor to investors. Cat Reinsurers in many cases. • Reduced cost of bonds emerged from a need • Claim Management: The reinsurance due to risk by insurance companies to claims are calculated on diversification and risk alleviate some of the risks the basis of yield derived consolidation they would face if a major from the Crop Cutting • Same underwriting catastrophe occurred, which Experiments (CCEs). As standards and premium would incur damages that the CCEs conducted by the rates for all insurance they could not cover by the State Government companies invested premiums. An machineries involve insurance company issues • Government support and human intervention, it bonds through an investment coordination is much leads to delay apart from bank, which are then sold to easier when dealing with9102 hcraM lanruoJ IADRI single entity Welfare (MoAFW), many of greater demand for • Pooling will make the the challenges faced by the reinsurance capacity. It is portfolio less volatile and Reinsurers mentioned above going to be win-win situation more predictable. have been corrected. Now, for all the stakeholders. Crop the Insurance companies are Insurance with Reinsurance • It helps to create a PPP also focusing more on both as backbone is a vehicle which (Public Private Pricing and Claim is not only mitigating crop Partnership) model in Management at a larger scale. risks for farmers, but also Crop Insurance. helping in food security, The premium under PMFBY Conclusion protecting credit, alleviating is growing as the Government With the issuance of the poverty, enhancing farmer intends/ targets to insure revised Operational income, stabilizing 50% of the farmers in 2019- Guidelines by the Ministry of Government fiscal volatility 20 as against 30% of present Agriculture and Farmers’ etc. level. There is going to be References: 1. Goodwin, Barry K. 2013. Agricultural Reinsurance Issues. North Carolina State University October 7, 2013 AAEA Crop Insurance and The Farm Bill Symposium Louisville, Kentucky. https://www.aaea.org/UserFiles/file/Plenary- AgriculturalReinsurance.pdf 2. Huang, Yutsai. 2013. Crop Insurance Program in Korea. http://ap.fftc.agnet.org/ ap_db.php?id=144 3. http://www.artemis.bm/library/what_is_alternative_risk_transfer.html 4. https://www.willistowerswatson.com/en/insights/2017/08/what-is-alternative-risk- transfer 5. https://en.wikipedia.org/wiki/Catastrophe_bond 6. http://fenaber.org.br/uploads/assets/files/Apresenta%C3%A7%C3%A3o%20- %20Eduardo%20Porcel%20-%20English%20version.pdf Reinsurance 34Reinsurance 35 9102 hcraM lanruoJ IADRI Issue Focus ‘Reinsurance - It’s evolution and role in the Indian Context’ Mr. Sanjay Datta ICICI Lombard General Insurance Co. Ltd. Reinsurance is the transfer of of loss reinsurance was Prior to Nationalization a part of the risk/portfolio that introduced to protect In India, prior to a direct insurer assumes by portfolios against catastrophe nationalization, there was way of insurance contract to hazards. very little reinsurance a second carrier, the prevalent in the local market. Reinsurer, who has no direct •-----• The period from 1951 contractual relationship with onwards was marked by a the insured. The reinsurance Reinsurance isthe transfer rapid growth of insurance cover may be used for of a part of the risk/ business due to large scale different purposes such as portfolio that a direct economic development in the reduction of exposure to a insurer assumes by way of country. The branches of single major risk, to cover insurance contract to a foreign companies in India catastrophe risk or to protect second carrier, the were protecting their against major variations in Reinsurer, who has no portfolios under global the loss experience of entire direct contractual programmes and domestic portfolios.Reinsurance acts as relationship with the companies had little need to a contingent capital for the insured. The reinsurance purchase reinsurance owing insurers and recently is also cover may be used for to only small and medium being used by insurers different purposes such as risks in the portfolio. At that worldwide to provide capital reduction of exposure to a time, reinsurance was relief. single major risk, to cover arranged from the foreign Evolution catastrophe risk or to markets mainly British and protect against major Continental. For providing Reinsurance has its origin variations in the loss the reinsurance capacity in much after insurance in the experience of entire limited way, there existed an 16th century globally with the portfolios.Reinsurance Indian Insurance Pool with need to spreading risk acts as a contingent capital members as local companies beyond local markets. It for the insurers and and purpose to share the started with reinsuring recently is also being used business underwritten by individual risks (Facultative by insurers worldwide to each company to stabilize the Reinsurance) and gradually provide capital relief. result of market as a whole. developed into a portfolio ----• • In 1956, Indian Reinsurance protection for each class w Corporation, a professional (Treaty Reinsurance). reinsurance company was Further, the concept of excess9102 hcraM lanruoJ IADRI formed by general insurers making it the parent body to protection for the reinsurance operating in India and it oversee the affairs of general costs incurred, and simplify started receiving premium insurance industry. GIC took the administration of cessions from member the onus of arranging business. companies. Apart from the reinsurance protections for Regulation 10 of IRDA pool, the government made it the insurance companies with (Registration of Indian statutory in 1961 for every a common integrated Insurance Companies) insurer to cede 20% in Fire reinsurance programme to Regulations, 2000 and Marine Cargo 10% in maximize the retention.In Marine Hull and addition to the above, the (Registration Regulation) laid Miscellaneous insurance and tariff structure started down the mode and manner 5% in Credit and Solvency operating in most of the for making an application for business to approved Indian classes to achieve a greater carrying on insurance reinsurers, namely Indian degree of homogeneity with business in India. Every Reinsurance Corporation and reinsurance purchase limited application was required to be Indian Guarantee and to manage large/special accompanied by evidence of General Company with the classes of business. having rupees two hundred purpose to retain the crore or more paid up equity Post Liberalization premiums domestically to the share capital, in case the extent possible. The above On 19th April, 2000, the application for grant of mentioned percentages were, Insurance Regulatory and certificate was to be allocated equally Development Authority Act, for reinsurance business. between the two reinsurers. 1999 (IRDA) came into force In order to support the wherein the exclusive Post Nationalization transition, the mandatory privilege of GIC and its cessions from the direct The entire general insurance subsidiaries carrying on insurers to GIC was continued business in India was general insurance in India at 20% till 2006-2007. It was nationalized by General was removed. In November gradually brought down to Insurance Business 2000, GIC was renotified to 15% in 2007-2008; 10% in (Nationalization) Act, 1972 have the sole function of 2008-2013 and currently is at (GIBNA). Subsequent to the national reinsurer and 5%. On October 25, 2017, GIC nationalization, the aforesaid consequently GIC ceased to Re got listed on the stock companies were merged into be a holding company of its exchange and is currently the the statutory entity, General subsidiaries. The ownership 10th largest global reinsurer. Insurance Corporation of of the four erstwhile With the industry maturing India (GIC) which was subsidiary companies and also and recognizing the need to incorporated on 22 of the General Insurance bring in more capital and November 1972 under the Corporation of India was innovation, the regulations Companies Act, 1956 as a vested with Government of were framed allowing foreign private company for the India. The insurance reinsurers to open branch purpose of superintending, industry was now responsible offices in India. controlling and carrying on to arrange its own the business of general reinsurance protection. IRDAI vide Insurance insurance and continued to Regulatory Development Reinsurance Regulations receive 20% mandatory Authority of India cessions. The erstwhile IRDAI released the first set of (Registration and Operations general insurance companies reinsurance regulations on of Branch Offices of Foreign were merged into four 14th July, 2000 with the Reinsurers other than regional companies and were objective of maximizing Lloyd’s) Regulations, 2015 made wholly owned retention within the country, permitted registration and subsidiaries of the GIC, develop adequate capacity, operation of branch offices of secure the best possible Foreign Reinsurers in India. Reinsurance 36Reinsurance 37 9102 hcraM lanruoJ IADRI The overarching regulatory India. Since Lloyds are offices under the Lloyd’s framework for the structured in a manner platform. reinsurance of general different from the company Reinsurance Outlook insurance risks was laid down markets, separate by the IRDAI (General regulations were prescribed India is considered to be one Insurance-Reinsurance) for it. Since then several of the important emerging Regulations 2016 foreign reinsurers have markets for the reinsurers. (Reinsurance Regulations). opened branch offices in India Rapid industrialization and which include Munich Re, urbanization along with very The guidelines prescribe in Swiss Re, Hannover Re, low General insurance detail, the capital SCOR Re, XL Catlin, Gen RE penetration (0.77% of GDP) requirement and other and Allianz. Markel and Amlin provides a compelling compliances needed for have also opened branch investment case. opening a branch office in Industry 40% 20.0 25.0 30% 12.4 13.5 20.0 15.0 20% 10.0 10% 5.0 0% 0.0 FY14 FY15 FY16 FY17 - GWP (USO bn) - RI Ceded Graph 01: Reinsurance premium ceded % GWP In terms of premium, the protection for large losses. proportional reinsurance Indian reinsurance market The commercial lines business structures in place. Due to grew at a CAGR of around like fire and engineering and this, the reinsurance ceding is 12% since 2009 with almost specialty lines like not in line with product mix 30% of the total premium Agriculture, Liability and of general insurance market. ceded to reinsurance market Aviation are more An analysis of the portfolio of [Graph 01].The increase was reinsurance dependent with GIC Re for FY 2018 validates due to the robust growth both proportional and non- this point [Graph 02]. posted by the insurance Mix of Reinsurance Premium -GIC industry, which was aided by coming of new entrants in the ■ Fire ■ Marine Cargo ■ Marine Hull ■ Motor Engineering insurance sector. In the ■ Liability ■ Aviation ■ PA ■ Health ■ Agri recent past the bulk growth in ■ Others ■ Credit ■WC the reinsurance premium has 1% 0% been contributed by the • Agriculture portfolio. ', . 2% Of the total reinsurance premium, treaty business =---1% accounts for over 85% while the balance is facultative - reinsurance. In India, the personal lines business like 2% 2%" 1% ----- 2% Health and Motor are largely Graph 02: Mix of Reinsurance premium received by GIC, 2018 retained by the companies with some excess of loss9102 hcraM lanruoJ IADRI Further, the motor and health premiums are largely treaty driven and obligatory cessions to GIC and hence may not follow the Indian reinsurance market in general. A study of the total cessions for FY between India and outside India is given below [Graph 03]. Fire Marine Cargo Marine Hull Motor Engineering Aviation & Other Misc. ■ % India ■ % Outside % RI Ceded Graph 03: Reinsurance ceding However, with the operations regulations such as RERA, References: of foreign branches getting there is an inherent need for · Global Reinsurance stabilized over time, the newer and wider covers Highlights 2018 (pp. 1- premium retained in India is around cyber, liability, 88, Rep.). (n.d.). Bromley, expected to increase further. aviation, energy, unarmed UK: Intelligent Insurer. vehicles etc., and thereby Way forward need of working collectively to · History in brief. (n.d.). The role of reinsurance develop risk and pricing Retrieved November 28, market traditionally has been models and enhance 2018, from https:// to fuel growth and stabilize underwriting standards, www.gicofindia.com/en/ the primary insurance market pricing and wording of about-us which continues to be valid as policies. The cedants’ · Reinsurance in Indian economy is growing at 7% and expectations have also Perspective. (n.d.). creating more risks. evolved and they now look for Retrieved December 01, Reinsurance will stimulate not only capacity providers 2018, from http:// better growth in terms of but also for risk partners as theinsurancesurveyor.com/ concentration of risks. There well. insurance-education/ is an incremental role to play The regulator continues to reinsurance-in-indian- by the reinsurance market play an important role to perspective/ depending on the class of business. Focus on innovation evolve the market by further · Nema, D. K., Dr, & Jain, and technology solutions for exploring regulatory P. (2012). GROWTH OF personal lines such as Health, frameworks and practices REINSURANCE IN Motor, Home and more relating to reinsurance pools, INDIA. ZENITH capital infusion to support Alternative Risk Transfer International Journal of infrastructure projects on (ART) and such other Business Economics & dams, ports, roads and others mechanisms and make Management Research, largely under engineering and appropriate recommendations 57-70. doi:http:// fire. With increased scope of apart from attaining global zenithresearch.org.in/ best practices. insurance and changing Reinsurance 38Reinsurance 39 9102 hcraM lanruoJ IADRI Cyber Insurance and Reinsurance Trends Neha Anand Underwriter, Casualty Munich Re India Branch Cyber risks are omnipresent. it has been hacked. 2,500 applications. As the WannaCry and Cyber risk is very dynamic According to public NotPetya ransomware with no geographic boundary. information, the impact on attacks demonstrated, the It qualifies among the top Cosmos Bank in India was to economic cost from business perceived threats to the tune of INR 94 crore due interruption and loss of data businesses globally. Cyber- to malware attack on the is now occurring on an attacks rank 3rd on list of Top banking systems which unprecedented scale. With 5 Global Risks in terms of enabled nearly 14,800 devices and machines likelihood. fraudulent transactions. becoming more Private individuals can (Source The Global Risks Report interconnected, cyber threats become victims of 2018 by World Economic Forum) are fast becoming the risk of For instance, NotPetya (one cyberattacks just as easily as the century. of the most vicious of companies. India is the second With the ever progressive malwares) in 2017 severely largest online market, with technology developments, impacted giants like Maersk, 369 million internet users new associated hazards and Merck, Saint Gobain, recorded in 2017. India is now risks are surfacing – from Mondelez. Globally it costed ranked number one mobile cyber-attacks to intrusions. companies an estimated USD data consuming country. Cyber-attacks are now 1.2 billion. The insurance While very few get reported, becoming more specialized, claims from Cyclone Harvey the number of Cyber-crimes concentrated in nature, were USD 30 billion in 2017. committed in India is targeting all types of increasing steadily. According It was almost like an act of organizations, as well as •-----• cyber war – the intention of individuals. The impact due to the malware was purely these incidents is also Cyber risk is very destructive. It irreversibly alarming – it spans financial dynamic with no encrypted computers’ master losses, disruption of business geographic boundary. It boot records, the very part of operations, erosion of qualifies among the top the machine that tells it where shareholder value and trust perceived threats to to find its own operating and reputational damage. The businesses globally. system. Maersk had to threat is so daunting that the Cyber-attacks rank 3rd on reinstall their entire question is not how or if an list of Top 5 Global Risks infrastructure with 4000 new attack will happen, but when in terms of likelihood. servers, 45,000 new PCs, ----• a company will discover that • w Source The Global Risks Report 2018 by World Economic Forum9102 hcraM lanruoJ IADRI to the National Crime Records  The law will have attack, damage or Bureau (NCRB), the motive jurisdiction over the unauthorized access. behind these cyber-crimes is processing of personal According to Forbes, the financial gain, gender data if such data has global cyber security market exploitation and to cause been used, shared, will reach around USD 170 disrepute. The risks outlined disclosed, collected or billion in 2020. By 2022, above are a significant threat otherwise processed in cyber security ratings will be for business continuity or India. as important as financial cause of financial loss to an  Personal data collected, credit ratings when assessing individual. used, shared, disclosed business relationships. The Legal Environment or otherwise processed Given the fact that cyber- for Cyber Crimes by companies under attacks are getting more and Indian law will be more sophisticated, The primary law dealing with covered, irrespective of companies will need to adopt cyber-crime and e-commerce where it is actually a proactive approach to in India is based on the processed in India. handle them rather than being Information Act 2000. When  However, penalties will reactive. People, processes it was formulated, the main be defined for violation and technology are the three intention was to provide legal of data protection law. main areas where companies framework for the promotion Just like GDPR, the need to focus when it comes of e-governance and e- penalties imposed will to making their ecosystems commerce in the country. The be up-to a fixed upper cyber-secure. On a macro Act has 90 sections and sets limit or a percentage of level, government, out various cyber-crimes and the total worldwide universities and industry their associated prescribed turnover of the need to get together to find a punishments. It was preceding financial year, viable solution for cyber amended in 2008 to include whichever is higher. security at large, for the sections related to electronic nation. devices, digital data and  The law defines, what cyber-crimes. qualifies as sensitive ‘Cyber Insurance’ is now personal data which being used as a strategy by In IT Amendment Act, 2008, includes passwords, companies for addressing the cyber security is exercised financial data, health risk but is still at a very under sections 43 (data data, biometric and nascent stage in India. It is protection), 66 (hacking),66A genetic data. offered as a standalone cover (measures against sending with first party and third offensive messages), 66B  Cross border data party loss coverages or is also (punishment for illegally transfer will be through offered as an extension to the possessing stolen computer model contract clauses existing Casualty or Property resources or communication with transferor being devices), 69 (cyber liable for harms caused policies. Given that the impact terrorism) among others. to the principal due to of Cyber-attack can be India is yet to have a General any violations extensive, the recommended committed by the way is to cover the exposures Data Protection Regulation (GDPR) equivalent of its own, transferee. as a standalone policy with exclusive policy limits and not however work has started in Cyber security and need tied-in with existing this direction. In July 2018, for Cyber Insurance – A insurance programs. This Justice BN Srikrishna market perspective would ensure that the Committee submitted its Cyber security refers to potential impact on key risks report on Personal Data methodologies and techniques such as Business Protection to Minister of adopted to protect the Interruption, loss of revenue, Electronics and Information integrity of networks, legal expenses and many Technology. The salient programs and data from others can be considered features of the report are: Reinsurance 40Reinsurance 41 9102 hcraM lanruoJ IADRI •-----• two insurers offering such keep (re)insurers on their Cyber security and need cover in India currently. It can toes. The need is to keep for Cyber Insurance – A provide indemnification to innovating in terms of market perspective individuals for financial loss, coverages which need to be legal costs, IT consultant fees customized and should Cyber security refers to and fees for psychology address the requirements of methodologies and counselling services, if the customers depending on techniques adopted to required, by an individual the industries they are in. For protect the integrity of under scenarios such as example, the need of a networks, programs and unauthorized online manufacturing set-up is data from attack, damage transactions, online different from that of a or unauthorized access. reputation damage, identity financial institution purely ----• • theft, phishing events and because of the data sets they w data restoration due to control and the business areas malware attack. they operate in. There are Market Development still gaps in coverage being comprehensively and offered in the market and appropriately. Cyber insurance demand is constant development in the increasing exponentially in Given the nature of Cyber offering is needed as the India. The number of buyers risks, it is fair to say that impact on clients expands and have increased by almost every Non-life policy is diversifies. 50% in 2017 as compared to potentially exposed to cyber 2016. Premium-wise, it is Also there is a need to manage risk. For instance – in the about INR 200 crore market. the exposures and monitor event that unauthorized This figure is expected to the accumulation because a access of machinery is taken double in the next two years single event can impact in a manufacturing set up, this from now. The buyers initially multiple insured parties, as could manipulate the were mostly large Tech well as multiple non-life operating software, causing companies which were buying coverages. machinery breakdown which large limit of indemnities but Needless to say there is a huge could result in fire, and in turn now the surge in demand is business potential for the could set the plant on fire and coming from Financial cyber insurance market. As damage neighbouring Institutions (especially banks, awareness about cyber- properties. Eventually there payment wallets), E- attacks and their risks grows, is physical damage to the commerce, Hospitality, more and more industry property, business Multimedia and Advertising leaders are recognizing Cyber interruption and third party companies. The limit of risks as a threat to their liability claims. Both the indemnity on an average business operations and the property and CGL policies can range from USD 5 to USD 20 need to protect themselves be triggered. These million but there are also few with cover. The times are unassessed and/or companies buying limits as over when a typical crime unmeasured exposures under high as USD 100 million. constituted a person being the conventional policies are now being termed as “Silent Since personal lines cyber is held up and robbed. In Cyber” which means cyber fairly new offering in the today’s environment crime is risks may or may not be market, the growth is yet to far more complex: attacks like specifically excluded or if be seen. The limit of hacking may be unseen, but included are ambiguous, or indemnities range from INR they certainly can have a unclear. These exposures 50,000 to INR 1 crore. These significant and negative need to be appropriately are products with impact. addressed by (re)insurers predetermined premium and Views expressed in this while underwriting and coverages with no individual awareness needs to be raised underwriting requirements. paper are author’s personal only and not of amongst policy buyers. Future Outlook the affiliating Cyber insurance is also The ever-changing nature of organisations available for individuals with cyber risks and exposures will9102 hcraM lanruoJ IADRI Climate Change - Modelling and pricing challenges Ms Prachi Ajmera, Trainee Underwriter – Non-Life Hannover Rück SE – India Branch. Climate change is real and which in turn has made storm more, a team of 23 scientists present. Endless human surges even more devastating who reviewed more than enterprise and the desire for as higher volume of water is 3,000 peer-reviewed comfort are driving up the pushed inland. This rise in sea scientific papers has emission of greenhouse gases level can make tsunamis even concluded that people (GHGs), which in turn are more destructive. What’s worldwide could be forced to triggering changes in many •-----• cope with three to six major climate hazards like hazards like rising hurricanes and floods. The temperatures, drought, heat Increased global warming mixture of heat, smoke and waves, wildfires, has also led to melting of dust produced in land and precipitation, floods, powerful polar ice caps and carried over by winds forms storms, sea level rise, etc at increasing sea levels, an envelope over the seas, once. which in turn has made causing the seawater to India, with its population of storm surges even more become warm. Warmer 125 crore and counting, is no devastating as higher water keeps the air warmer different. It is one of the most volume of water is pushed for longer, further energising vulnerable countries to inland. This rise in sea hurricanes. Furthermore, climate change. As per a level can make tsunamis some research suggests that study by the UN office for even more destructive. climate change is weakening Disaster Risk Reduction What’s more, a team of 23 the natural atmospheric (UNISDR), India suffered scientists who reviewed currents, which makes economic losses to the tune of more than 3,000 peer- hurricanes stall and release a USD 80 billion during the 20 reviewed scientific papers greater amount of water into year period from 1998-2017; has concluded that people the surface. This is the reason primarily due to economic worldwide could be forced behind the increasingly development, population to cope with three to six frequent and stronger growth, urbanization and major hazards like rising hurricanes, which are increasing concentration of temperatures, drought, followed by heavier and assets in areas vulnerable to heat waves, wildfires, prolonged downpours causing climate change. We are precipitation, floods, floods. continuously building in powerful storms, sea level Increased global warming has vulnerable zones exposed to rise, etc… at once. also led to melting of polar ice risks of flood, cyclones and caps and increasing sea levels, • • tsunamis. India’s increasing w Reinsurance 42Reinsurance 43 9102 hcraM lanruoJ IADRI •-----• urban footprint means underwriters to evaluate, increased concretisation of model and price catastrophic Recent floods in Kerala the surface, reduced excess of loss covers. have bared open a rainwater absorption capacity Pricing for such Act of God situation that can be best of the soil and more people (AoG) perils is done based on described as a “disaster- living in flood prone areas. modelled results. However, a dilemma scenario”. As it The planning and design is not question that remains rained heavily over a in accordance with the pace of unanswered is: are the month, the dams across climate change. For example, models able to estimate the the state filled up and drainage systems of the cities impact appropriately? crossed the danger mark like Mumbai, Chennai, Existing models use historical simultaneously. The dams Bangalore and Gurgaon have loss data of 100 years to were (probably) allowed to been constructed based on arrive at a result. be filled initially to create historical data without Nevertheless, increased adequate reserve of water considering the impact of frequency and severity of cat in order to avoid a draught climate change. Such events in the recent years is situation in the infrastructure is often making such modelled results forthcoming months. rendered ineffective during ineffective. As a compromise, However, to prevent downpours leading to city using a shorter period of 25- bursting of reservoir walls floods. 35 years is being considered in the wake of incessant Recent floods in Kerala have by underwriters. rains, the gates of 26 dams bared open a situation that Furthermore, in no way do had to be opened can be best described as a such models cater to grey or simultaneously, which “disaster-dilemma scenario”. black swan (extremely rare caused the wide spread As it rained heavily over a and unexpected) events, flood. Man- made factors month, the dams across the which cannot be ruled out. like these are increasingly state filled up and crossed the No model caters to the impact making “natural disasters” danger mark simultaneously. of the contributing ‘man- even more devastating. The dams were (probably) made’ factors on the natural • • allowed to be filled initially to disasters neither they can w create adequate reserve of model ‘concurrent multi water in order to avoid a hazards’ effectively. India’s draught situation in the vast geographic spectrum and wide spread flood has had a forthcoming months. diverse Nat Cat exposures limited impact on the Indian However, to prevent bursting makes the problem even insurance industry. Sadly, of reservoir walls in the wake more challenging for there is no proper flood model of incessant rains, the gates of underwriters. The ever- for India yet, which means twenty-six dams had to be increasing build-up of that the development of opened simultaneously, which properties and number of cars concurrent multi hazard caused the wide spread flood. in cities combined with models that capture insurers’ Man- made factors like these inadequate infrastructure and exposures adequately would are increasingly making preparedness to deal with the take a longer time. “natural disasters” even more heavy rainfall induced The perception of devastating. flooding is a sure shot recipe underwriters also plays a Uncertainties associated with for disaster. No wonder then major role in pricing Nat Cat the increasing impact of that the top Nat Cat events risks. Like common people climate change on natural affecting Indian insurance having perceived sense of catastrophes, man-made industry are mostly floods in exposure but no experience, factors and soft market cities like Mumbai, Chennai, even underwriters pricing conditions make it a difficult J&K and Gujarat. On the Nat Cat treaties believe that challenge for reinsurance other hand, Kerala with its9102 hcraM lanruoJ IADRI •-----• programs or bottom excess of remain negligible. Most often, The peril lurking round loss layers that are highly when disaster strikes, it falls the corner could entirely exposed to such losses. back on the shoulders of the be different: By the time The peril lurking round the government to cater to the India understands the corner could entirely be relief, recovery and requirement of wide different: By the time India reconstruction efforts. spread Nat – Cat understands the Nevertheless, government insurance in the wake of requirement of wide spread should act as a reinsurer of increased frequency and Nat – Cat insurance in the last resort. Insurance and severity of cyclones- wake of increased frequency Reinsurance should be used flooding along the costal and severity of cyclones- as vital elements of disaster belt or incidents of flooding along the costal belt financing before opening up megacity flooding, the or incidents of megacity the government’s coffers for available capacity of flooding, the available ex gratia payments or reinsurance, the capacity of reinsurance, the implementing a cess. Not just willingness of reinsurers willingness of reinsurers to finance, but also an to support such exposure support such exposure may underlying disaster insurance may drastically reduce. drastically reduce. Even if system based on a PPP Even if such capacity such capacity were available, model can also tremendously were available, it would it would come at a steep price. boost disaster management, come at a steep price. coordination, communication The low uptake of insurance, and mobilisation of resources, • • especially disaster insurance all with the objective of w in India is also attributable to minimising the losses to life the socio-economic and and property. the ensuing year shall pass behavioural nature of the without the need for a price population. Despite the It is about time that India change. This belief would awareness, the motivation to makes hay when the sun change if reinsurance treaties buy insurance against Nat shines, and implements a Nat were to be written on longer Cat perils is greatly Cat Insurance Program, than one-year terms. jeopardised by the ‘it will not develops flood or multi- happen to me’ attitude of hazard models for cities to Continued soft market believers. In addition, the ensure adequate pricing and conditions with flood of capital perception of disaster risks in to cater to large event(s) in in the reinsurance space has the mind of people exposed the future without further compounded the to such risks is either threatening the existence of problem, leaving little or no abstract or so overwhelming insurers. The development of room for the increased that it creates fatigue or a a sound underlying uncertainty and margins. No sense of inability to prevent technological system for wonder global events like it if it were to affect them. For disaster management would Hervey, Irma and Maria or the extremely poor and also boost this initiative. local events like Mumbai vulnerable, who are living life flood or even Chennai floods Views expressed in this on the edge, fending for (2015) did not cast a paper are author’s insurance anyway is a matter significant impact on pricing. personal only and not of of luxury. Penetration of This lack of proper pricing has the affiliating insurance in such regions forced prudent reinsurers to organisations therefore continues to abstain from participation in Reinsurance 44Reinsurance 45 Reinsurance Statistic as on March 2019 (Provisional) Reinsurer-wise Business INR in Crs Indian Business Foreign Business % Total SI No Reinsurer /FRB Retrocede Retention Retrocede Prop Treaty N Prop Treaty FAC Total % Retroceded Premium Retrocede Business d % d d 1 Swiss Re 1875.49 359.16 39.19 2273.84 1047 46.05% 53.95% 2.49 1.05 42.05% 2276.33 2 Munich Re 1777.68 371.92 98.63 2248.23 859.54 38.23% 61.77% 36.85 31.59 85.72% 2285.08 3 Axa Vie 47.61 0 1885.4 1933.01 21 1.09% 98.91% 0 0 0.00% 1933.01 4 SCOR 1467.28 68.86 35.69 1571.83 722.4 45.96% 54.04% 0 0 0.00% 1571.83 5 XL Cat 161.35 96.11 48.04 305.49 56.7 18.56% 81.44% 7.97 0 0.00% 313.46 6 Hannover 459.81 149.54 13.53 622.88 289.1 46.41% 53.59% 0.18 0.07 38.85% 623.06 7 RGA 107.54 0 91.72 199.27 90.3 45.32% 54.68% 0.15 0.15 100.00% 199.42 8 Gen Re 186.7 1.97 5.7 194.36 40.35 20.76% 79.24% 0 0 0.00% 194.36 9 Lloyd's 0 0 1.24 1.24 0 0.00% 100.00% 0 0 0.00% 1.24 10 Allianz 0 0 94.45 94.45 42.36 44.85% 55.15% 7.82 0.13 1.66% 102.27 11 ITI Re 0 0 0 0 0 0.00% 0.00% 0 0 0.00% 0 Private Total 6083.46 1047.57 2313.58 9444.61 3168.75 33.55% 66.45% 55.46 32.99 59.47% 9500.07 12 GIC Re 28422.99 1285.24 1198.15 30906.37 4068.51 13.16% 86.84% 13330.9 1171.82 8.79% 44237.27 Grand Total 34506.45 2332.81 3511.73 40350.98 7237.26 17.94% 82.06% 13386.36 1204.81 9.00% 53737.34 IRDAI Journal March 2019IRDAI Journal March 2019 46 Reinsurance Premium No. of Policies / Schemes ISi No. Insurer For March, For March, Up to 31st Up to 31st Growth in Market For March, For March, Growth in Up to 31st Up to 31st Growth in% Growth in% 2018 2019 March, 2018 March, 2019 % Share 2018 2019 % March, 2018 March, 2019 1 Aditya Birla Sun Life 637.96 724.53 13.57 2662.91 3916.10 47.06 1.82 39604 51270 29.46 248751 285894 14.93 Individual Sinsile Premium 43.19 20.30 -52.99 103.73 115.18 11.03 036 273 717 162.64 1184 3824 22297 Individual Non-Sinsile Premium 254.50 342.36 3452 1048.60 1682 04 6041 2.55 39220 50426 28.57 246626 281033 13.95 Group Sinqle Premium 324.12 352.64 8.80 1301.89 1998 03 53.47 1.84 7 21 20000 56 98 75.00 Group Non-Single Premium 6.95 1.51 -78.24 125.04 3401 -7280 088 1 0 -10000 12 5 -58.33 Group Yearly Renewable Premium 9.19 7.72 -16.02 83.65 86.84 3.81 1.84 103 106 2.91 873 934 6.99 2 Aegon Life 37.85 20.66 -45.42 147.10 117.63 -20.03 0.05 19649 8473 -56.88 68891 52963 -23.12 Individual Sinsile Premium 0.49 0.34 -30.57 2.41 1.90 -21.00 001 10798 3623 -66.45 14699 11352 -22.77 Individual Non-Sinqle Premium 27.77 17.57 -36.75 131.48 100.62 -23.47 015 8842 4820 -45.49 54151 41517 -23.33 Group Sinqle Premium 9.09 0.50 -9454 9.10 3.54 -61 06 000 1 0 -10000 2 0 -100.00 Group Non-Sinqle Premium 0.02 000 -10000 0.08 000 -100.00 000 0 0 NA 1 0 -100.00 Group Yearly Renewable Premium 0.48 2.26 374.34 403 11.57 18686 0.25 8 30 275.00 38 94 147.37 3 Aviva Life 80.76 78.03 -3.38 325.57 283.83 -12.82 0.13 7864 4694 -40.31 36379 32210 -11.46 Individual Sinsile Premium 2.15 1.27 -4091 8.73 7.33 -1597 0.02 2351 470 -8001 9480 6325 -33.28 Individual Non-Single Premium 50.91 42.72 -16.08 188.78 167.52 -11.27 0.25 5500 4221 -23.25 26801 25829 -3.63 Group Sinqle Premium 0.49 0.67 35.17 10.04 4.01 -6004 0.00 0 0 NA 3 2 -33.33 Group Non-Sinqle Premium 0.34 0.19 -43.13 1.99 2.61 31.28 0.07 0 0 NA 0 0 NA Group Yearly Renewable Premium 26.87 33.17 23.46 116.04 102.36 -11.79 2.17 13 3 -76.92 95 54 -43.16 4 Bajaj Allianz Life 805.50 1182.11 46.75 4290.85 4922.89 14.73 2.29 45717 54295 18.76 308501 310952 0.79 Individual Sinqle Premium 12.11 11.91 -1.66 65.22 65.63 064 0.21 402 153 -61.94 2409 1661 -31.05 Individual Non-Sinqle Premium 234.14 384.99 64.43 1390.55 1735.55 24.81 2.63 45305 54124 19.47 305963 309211 1.06 Group Single Premium 534.21 764.18 43.05 2508.47 2895.45 1543 267 9 5 -44.44 79 40 -49.37 Group Non-Single Premium 1.18 0.24 -79.43 5.55 1.48 -73.41 004 0 0 NA 6 0 -10000 Group Yearly Renewable Premium 23.86 20.79 -12.86 321.07 224.79 -29.99 4.77 1 13 120000 44 40 -9.09 5 Bharti Axa Life 149.50 143.79 -3.81 730.71 910.67 24.63 0.42 37961 32656 -13.97 123936 167711 35.32 Individual Sinqle Premium 20.82 21.04 1.06 3206 66.81 108.35 021 16600 10659 -35.79 16831 20551 2210 Individual Non-Sinqle Premium 93.35 96.50 3.37 435.85 577.31 3246 087 21360 21996 2.98 107099 147148 37.39 Group Sinqle Premium 35.32 26.25 -25.67 262.79 266.56 1.43 025 1 1 000 6 12 10000 Group Non-Sinqle Premium 0 00 000 NA 000 000 NA 000 0 0 NA 0 0 NA Group Yearly Renewable Premium 0 00 000 NA 000 000 NA 000 0 0 NA 0 0 NA 6 Canara HSBC OBC Life 153.47 221.99 44.65 1227.46 1460.27 18.97 0.68 16251 24358 49.89 104873 129068 23.07 Individual Sinqle Premium 1.77 4.39 14773 14.13 57.49 306.88 018 28 48 71.43 321 344 717 Individual Non-Single Premium 133.86 178.50 33.35 816.52 909.50 11.39 1.38 16222 24310 49.86 104528 128716 23.14 Group Sinqle Premium 16.48 33.75 104.74 35208 422.24 19.92 039 0 0 NA 9 4 -55.56 Group Non-Sinsile Premium 0.89 1.13 26.33 5.20 6.77 3013 018 0 0 NA 4 0 -10000 Group Yearly Renewable Premium 0.46 4.23 823.72 39.53 64.27 62.61 1.36 1 0 -10000 11 4 -63.64 7 DHFL Pramerlca Life 1TT.64 80.71 -54.56 1449.84 1220.25 -15.84 0.57 15914 6682 -58.01 93423 74210 -20.57 Individual Sinqle Premium 10.28 2.66 -74.10 46.25 18.59 -59.80 006 1914 41 -97.86 9061 1926 -78.74 Individual Non-Sinsile Premium 54.83 25.87 -52.82 315.86 296.58 -611 045 13897 6562 -52.78 83162 71288 -14.28 Group Single Premium 55.94 3308 -4086 749.03 569.27 -24.00 053 0 3 NA 16 15 -6.25 Group Non-Sinsile Premium 0.00 000 NA 000 000 NA 000 0 0 NA 0 0 NA Group Yearly Renewable Premium 56.58 19.10 -66.25 338.70 335.82 -085 7.12 103 76 -26.21 1184 981 -17.15Reinsurance 47 8 Edlewelss Tokio Life 89.30 104.95 17.52 342.52 455.63 33.02 0.21 15311 15329 0.12 64805 81074 25.10 Individual Single Premium 4.72 3.33 -29.37 18.28 14.58 -20.24 0.05 2152 1455 -32.39 3824 6159 61.06 Individual Non-SinQle Premium 67.11 69.92 4.18 248.86 339.01 36.22 0.51 13156 13870 5.43 60918 74872 22.91 Group SinQle Premium 10.24 12.44 21.56 42.19 51.13 21.20 0.05 0 1 NA 0 1 NA Group Non-Sinqle Premium 6.85 19.07 178.47 17.72 33.86 91.02 0.88 0 2 NA 11 8 -27.27 Group Yea riv Renewable Premium 0.39 0.19 -51.18 15.46 17.05 1028 0.36 3 1 -66.67 52 34 -34.62 9 Exide Life 133.13 162.52 22.07 760.09 802.24 5.55 0.37 28601 34324 20.01 194105 200630 3.36 Individual Sinqle Premium 4.05 21.14 421.71 31.64 57.49 81.74 0.18 57 705 1136.84 457 1272 178.34 Individual Non-Single Premium 120.52 124.98 3.70 616.09 661.98 7.45 1.00 28510 33610 17.89 193406 199240 3.02 Group Single Premium 0.07 0.09 21.83 0.45 0.58 28.74 0.00 1 0 -100.00 3 1 -66.67 Group Non-Sinqle Premium 7.17 9.50 32.41 90.15 46.67 -48.23 1.21 33 9 -72.73 239 117 -51.05 Group Yearlv Renewable Premium 1.32 6.81 416.94 21.77 35.51 63.14 0.75 0 0 NA 0 0 NA 10 Future Generali Life 134.01 187.41 39.85 582.20 714.90 22.79 0.33 12945 15670 21.05 79793 71546 -10.34 Individual Sinqle Premium 0.91 118 29.60 7.27 6.08 -16.35 0.02 75 68 -9.33 819 346 -57.75 Individual Non-Sinqle Premium 78.97 118.34 49.86 278.49 374.48 34.47 0.57 12860 15587 21.21 78890 71112 -9.86 Group Sinqle Premium 11.59 11.50 -0.73 57.48 68.61 19.36 0.06 3 2 -33.33 15 18 2000 Group Non-Sinole Premium 0.00 0.00 NA 0.00 0.00 NA 0.00 0 0 NA 0 0 NA Group Yearlv Renewable Premium 42.54 56.38 32.52 238.96 265.74 11.20 5.63 7 13 8571 69 70 1.45 11 HDFC Life 2043.24 2551.61 24.88 11349.13 14971.50 31.92 6.97 163119 149761 -8.19 1050200 995587 -5.20 Individual Single Premium 405.09 413.16 1.99 1321.64 2925.18 121.33 9.24 6772 6744 -0.41 28182 46751 65.89 Individual Non-Sinqle Premium 789.91 795.59 0.72 4621.47 4719.78 2.13 7.15 156244 142913 -8.53 1021447 948249 -7.17 Group Sinqle Premium 833.09 1309.90 57.23 5289.52 6988.14 32.11 6.45 39 45 15.38 197 241 22.34 Group Non-Sinole Premium 000 000 NA 000 000 NA 0.00 0 0 NA 0 0 NA Group Yearly Renewable Premium 15.15 32.96 117.58 116.52 338.39 190.42 7.17 64 59 -7.81 374 346 -7.49 12 ICICI Prudential Life 1052.07 1451.59 37.97 9118.07 10251.81 12.43 4.78 94973 97434 2.59 837130 893841 6.77 Individual Sinqle Premium 177.05 157.42 -11.09 1045.99 1161.58 11.05 3.67 5434 2174 -59.99 46627 40435 -13.28 Individual Non-Single Premium 805.94 921.14 14.29 7355.96 6978.40 -5.13 1057 89424 95085 6.33 789976 852045 7.86 Group Single Premium 39.53 261.25 560.85 207.41 1333.96 543.16 1.23 12 10 -16.67 57 119 108.77 Group Non-Single Premium 000 0.00 NA 000 000 NA 000 0 0 NA 0 0 NA Group Yearly Renewable Premium 29.55 111.77 278.27 508.72 777.87 52.91 16.49 103 165 60.19 470 1242 164.26 13 IDBI Federal Life 144.58 112.32 -22.32 833.03 806.62 -3.17 0.38 19509 11459 -41.26 116713 101810 -12.77 Individual Sinqle Premium 50.15 23.65 -52.84 316.48 219.98 -30.49 0.69 2371 935 -60.57 14968 8199 -45.22 Individual Non-Sinole Premium 73.77 61.89 -16. 11 415.40 424.28 2.14 0.64 17137 10522 -38.60 101725 93604 -7.98 Group SinQle Premium 20.49 26.67 30.16 99.94 160.90 60.99 0.15 1 2 100.00 20 7 -65.00 Group Non-Sinqle Premium 0.17 0.11 -35.40 1.20 1.46 21.46 0.04 0 0 NA 0 0 NA Group Yearly Renewable Premium 000 0.00 NA 000 000 NA 000 0 0 NA 0 0 NA 14 India First Life 337.18 352.77 4.62 1424.97 1994.15 39.94 0.93 25807 23835 -7.64 182953 177908 -2.76 Individual Sinole Premium 7.52 2.18 -71.00 35.22 22.22 -36.91 0.07 7169 1936 -7299 34664 26620 -23.21 Individual Non-SinQle Premium 80.62 122.07 51.42 571.86 678.35 18.62 1.03 18631 21883 17.45 148205 151172 2.00 Group SinQle Premium 249.05 228.46 -8.27 817.27 1293.20 58.23 1.19 7 16 128.57 84 112 33.33 Group Non-Sinqle Premium 000 0.06 NA 000 0.37 NA 0.01 0 0 NA 0 4 NA Group Yea riv Renewable Premium 0.00 0.00 NA 0.61 0.00 -100.00 0.00 0 0 NA 0 0 NA 15 Kotak Mahindra Life 727.57 898.97 23.56 3404.21 3977.11 16.83 1.85 77996 73838 -5.33 338639 346885 2.44 Individual SinQle Premium 159.93 156.44 -2.18 441.49 515.40 16.74 1.63 19641 4758 -75.78 64213 54923 -14.47 Individual Non-Single Premium 376.06 419.24 11.48 1530.36 1616.21 5.61 2.45 58253 68961 18.38 273721 291198 6.38 IRDAI Journal March 2019IRDAI Journal March 2019 48 Reinsurance Group Single Premium 68.81 85.00 23.53 648.04 927.64 43.15 0.86 13 15 15.38 135 139 2.96 Group Non-Sinqle Premium 3.78 0.84 -77.80 24.65 19.79 -19.69 0.51 7 7 000 63 63 000 Group Yearly Renewable Premium 118.99 237.44 99.55 759.67 898.07 18.22 19.04 82 97 18.29 507 562 1085 16 Max Life 927.20 1068.66 15.26 4348.03 5159.55 18.66 2.40 110329 121484 10.11 561841 645629 14.91 Individual Sinqle Premium 140.16 167.43 19.46 854.37 963.49 12.77 3.04 237 181 -23.63 938 1102 17.48 Individual Non-Sinqle Premium 732.04 842.98 1515 3129.02 3782.34 20.88 5.73 110038 121241 1018 560394 643811 14.89 Group Sinale Premium 44.02 44.20 041 302.71 323.79 6.96 030 3 6 10000 52 93 78.85 Group Non-Sinqle Premium 0 00 000 NA 000 000 NA 000 0 0 NA 0 0 NA Group Yearly Renewable Premium 10.98 14.05 2799 61.94 89.92 45.18 1.91 51 56 9.80 457 623 36.32 17 PNB Met Life 271.91 365.27 34.34 1427.05 1681.86 17.86 0.78 29860 33342 11.66 219805 212255 -3.43 Individual Single Premium 2.47 2.29 -709 37.02 24.41 -34.07 0.08 103 87 -1553 973 951 -2.26 Individual Non-Sinqle Premium 226.00 264.36 1698 1217.36 1369.02 12.46 207 29745 33231 11.72 218693 211096 -3.47 Group Single Premium 28.19 88.49 213.97 128.96 237.05 83.82 0.22 0 2 NA 0 2 NA Group Non-Single Premium 0.33 0.11 -6725 2.30 2.01 -12.87 0.05 12 22 83.33 139 206 48.20 Group Yearly Renewable Premium 14.93 10.02 -32.87 41.41 49.38 19.26 1.05 0 0 NA 0 0 NA 18 Reliance Nippon Life 151.23 165.85 9.67 915.62 1067.00 16.53 0.50 34358 27874 -18.87 216651 225951 4.29 Individual Sinqle Premium 2.72 3.27 2039 18.93 28.54 50.80 0.09 125 166 32.80 882 1260 42.86 Individual Non-Single Premium 129.12 114.96 -1097 725.27 873.55 20.44 1.32 34217 27694 -19.06 215625 224611 417 Group Sinqle Premium 2.47 0.22 -91.19 25.46 8.03 -68.47 0.01 0 0 NA 2 1 -5000 Group Non-Sinqle Premium 14.95 46.51 211.22 113.32 124.80 10.13 3.23 8 8 000 34 22 -35.29 Group Yearly Renewable Premium 1.98 0.89 -55.27 32.65 32.09 -1.71 0.68 8 6 -25.00 108 57 -4722 19 Sahara Life 0.07 0.00 -100.00 4.26 0.00 -100.00 0.00 0 0 NA 1622 0 -100.00 Individual Sinqle Premium 0 00 000 NA 1.90 000 -100.00 000 0 0 NA 366 0 -10000 Individual Non-Sinqle Premium 0.07 000 -10000 2.36 000 -100.00 000 0 0 NA 1256 0 -10000 Group Sinale Premium 0 00 0.00 NA 000 000 NA 000 0 0 NA 0 0 NA Group Non-Sinqle Premium 0 00 000 NA 000 000 NA 000 0 0 NA 0 0 NA Group Yearly Renewable Premium 0.00 0.00 NA 0.00 0.00 NA 000 0 0 NA 0 0 NA 20 SBI Life 1761.94 1922.74 9.13 10965.29 13792.03 25.78 6.42 200247 214298 7.02 1428457 1526144 6.84 Individual Sinqle Premium 89.43 92.28 3.19 687.34 757.21 10.16 239 3473 2907 -16.30 21841 19939 -8.71 Individual Non-Simle Premium 912.91 1175.06 28.72 7718.59 8879.02 15.03 13.45 196566 211302 750 1405193 1505500 714 Group Sinale Premium 709.21 629.88 -11. 19 2139.43 3977.55 85.92 3.67 12 8 -33.33 104 90 -13.46 Group Non-Sinqle Premium 30.69 11.46 -62.66 217.91 36.34 -83.32 0.94 9 0 -10000 26 2 -92.31 Group Yearlv Renewable Premium 19.71 14.07 -28.61 202.01 141.91 -29.75 3.01 187 81 -56.68 1293 613 -52.59 21 Shrlram Life 142.59 160.29 12.41 815.92 822.72 0.83 0.38 45TT2 52334 14.34 247183 276483 11.85 Individual Single Premium 8.88 12.46 4034 45.70 63.04 3793 020 398 676 69.85 2464 3190 29.46 Individual Non-Single Premium 79.58 91.95 15.54 425.15 454.06 6.80 069 45367 51652 13.85 244593 273253 11.72 Group Single Premium 49.55 54.06 9.10 283.74 266.37 -6.12 025 5 5 000 14 12 -14.29 Group Non-Single Premium 0 00 000 NA 000 000 NA 000 0 0 NA 0 0 NA Group Yearly Renewable Premium 4.58 1.81 -60.45 61.32 39.25 -35.99 083 2 1 -5000 112 28 -7500 22 Star Union Dai-ichi Life 111.82 129.29 15.62 700.72 676.51 -3.46 0.32 14589 14158 -2.95 113211 96007 -15.20 Individual Sinqle Premium 5.13 6.97 3596 75.88 49.75 -34.44 0.16 159 192 2075 1919 1410 -26.52 Individual Non-Sinqle Premium 93.26 110.84 18.85 566.89 558.79 -1.43 085 14429 13965 -3.22 111284 94589 -1500 Group Sinale Premium 10.22 9.22 -9.79 40.31 53.17 31.91 005 0 0 NA 0 2 NA Group Non-Sinqle Premium 0.55 0.22 -6070 2.33 2.25 -3.32 0.06 0 0 NA 0 0 NA Group Yearly Renewable Premium 2.66 2.04 -23.54 15.31 12.55 -18.04 0.27 1 1 000 8 6 -25.00Reinsurance 49 23 Tata AIA Life 352.61 596.44 69.15 1489.01 2475.90 66.28 1.15 50811 75093 47.79 222740 349798 57.04 Individual Single Premium 2.11 61.01 2788.44 6.64 131.87 1885.04 0.42 38 623 1539.47 185 1409 661.62 Individual Non-Single Premium 336.41 511.65 52.09 1396.73 2218.89 58.86 3.36 50765 74446 46.65 222476 348268 56.54 Group Single Premium 0.00 8.00 255717.22 0.00 32.08 69879087 0.03 0 0 NA 0 7 NA Group Non-Single Premium 14.01 15.11 784 85.19 87.06 2.19 2.25 5 4 -2000 64 67 4.69 Group Yearly Renewable Premium 0.07 0.66 852.59 0.44 6.00 126062 013 3 20 56667 15 47 213.33 Private Total 10423.15 12682.48 21.68 59314.55 72481.17 22.20 33.76 1107187 1142661 3.20 6860602 7254556 5.74 Individual Sinale Premium 1151.13 1186.14 3.04 5218.32 7273.76 39.39 22.97 80570 39318 -51.20 277307 259949 -6.26 Individual Non-Single Premium 5751.67 6833.47 18.81 35147.50 39397.27 1209 59.68 1025688 1102421 748 6576132 6987362 6.25 Group Single Premium 3052.19 3980.46 3041 15276.31 21881.31 43.24 2018 114 142 24.56 854 1016 18.97 Group Non-Single Premium 87.89 106.05 2067 692.64 399.48 -4233 10.34 75 52 -3067 599 494 -17.53 Group Yearly Renewable Premium 380.28 576.35 51.56 2979.78 3529.35 18.44 74.83 740 728 -1.62 5710 5735 044 24 LIC of lndla 18748.16 24776.87 32.16 134551.68 142191.69 5.68 66.24 4612895 4396535 -4.69 21338176 21433256 0.45 Individual Sinale Premium 2547.16 3580.30 4056 26602.24 24393.55 -8.30 77.03 178335 174702 -2.04 1213172 1127538 -706 Individual Non-Sinale Premium 4809.65 4682.22 -2.65 25141.61 26618.63 5.87 40.32 4431039 4217746 -4.81 20097526 20276367 089 Group Sinale Premium 10963.27 13960.51 2734 79850.99 86527.42 8.36 79.82 38 76 10000 693 713 2.89 Group Non-Sinale Premium 200.53 2346.17 107000 2083.37 3464.98 6632 89.66 973 848 -12.85 3799 3288 -13.45 Group Yearlv Renewable Premium 227.55 207.68 -8.73 873.47 1187.12 3591 2517 2510 3163 2602 22986 25350 1028 Grand Total 29171.31 37459.36 28.41 193866.24 214672.86 10.73 100.00 5720082 5539196 -3.16 28198778 28687812 1.73 Individual Single Premium 3698.29 4766.44 28.88 31820.56 31667.31 -048 100.00 258905 214020 -1734 1490479 1387487 -6.91 Individual Non-Single Premium 10561.32 11515.69 9.04 60289.11 66015.90 9.50 100.00 5456727 5320167 -2.50 26673658 27263729 2.21 Group Single Premium 14015.46 17940.97 28.01 95127.30 108408.72 13.96 100.00 152 218 43.42 1547 1729 11.76 Group Non-Sinale Premium 288.41 2452.22 75025 2776.01 3864.46 39.21 100.00 1048 900 -14.12 4398 3782 -1401 Group Yearly Renewable Premium 607.83 784.03 28.99 3853.25 4716.48 2240 100.00 3250 3891 19.72 28696 31085 8.33 Note: 1. Cumulative premium upto the month is net of cancellations which may occur during the free look period IRDAI Journal March 2019IRDAI Journal March 2019 50 Reinsurance No. of lives covered under Group Schemes Sum Assured Market For March, For March, Growth in Up to 31st Up to 31st Growth in Market For March, For March, Growth in Up to 31st Up to 31st Market Growth in % Share 2018 2019 % March, 2018 March, 2019 % Share 2018 2019 % March, 2018 March, 2019 Share 1.00 324080 484790 49.59 2862143 3046743 6.45 1.36 26140.59 26292.04 0.58 188357.52 231782.32 23.05 5.35 0.28 0 0 NA 0 0 NA NA 191.50 4007 -79.08 399.66 246.00 -38.45 0.69 103 0 0 NA 0 0 NA NA 6942.32 9114.43 31.29 31265.58 50957.71 62.98 2.97 5.67 138161 321028 132.36 918133 1320407 43.81 1.30 835.90 1135.91 35.89 5412.25 7737 05 42.95 0.87 0. 13 17 0 -100.00 577 166 -71.23 0.00 000 000 NA 000 000 NA 0.00 300 185902 163762 -11.91 1943433 1726170 -11.18 1.51 18170.86 16001.63 -11.94 15128003 172841.57 14.25 11.01 0.18 8532 22356 162.03 54549 142855 161.88 0.06 5848.17 5899.79 0.88 37738.32 41488.87 9.94 0.96 0.82 0 0 NA 0 0 NA NA 18.11 804 -5560 38.38 32.31 -15.81 0.09 0.15 0 0 NA 0 0 NA NA 484470 2511.76 -48.15 3310777 28468.91 -14.01 1.66 0.00 1075 0 -100.00 6248 0 -100.00 0.00 159.90 000 -100.00 162.76 000 -100.00 0.00 0.00 234 0 -100.00 860 0 -100.00 0.00 2.72 000 -100.00 8.95 000 -100.00 0.00 0.30 7223 22356 209.51 47441 142855 201.12 0.12 822.74 3379.98 310.82 4420.46 12987.65 193. 81 0.83 0.11 57865 49980 -13.63 361162 458631 26.99 0.20 1026.54 1205.39 17.42 10785.74 6475.94 -39.96 0.15 0.46 0 0 NA 0 0 NA NA 5.56 1.30 -76.59 24.47 15.16 -38.04 0.04 0.09 0 0 NA 0 0 NA NA 973.99 818.43 -15.97 4997.26 483805 -3.19 0.28 0. 12 470 827 75.96 10835 5083 -5309 0.00 -198.32 29.52 -114.89 279.52 138.42 -50.48 0.02 0.00 0 0 NA 0 0 NA 0.00 -0.11 000 -100.00 -8.80 -133.84 1421.17 -0. 11 0.17 57395 49153 -14.36 350327 453548 29.46 0.40 245.40 356.14 4513 5493.28 1618.15 -70.54 0.10 1.08 7297670 5698571 -21.91 38128462 35313582 -7.38 15.72 34021.59 40037.25 17.68 196466.18 248016.03 26.24 5.72 0.12 0 0 NA 0 0 NA NA 14.28 35.40 14793 126 06 74.15 -41.18 0.21 1.13 0 0 NA 0 0 NA NA 289808 5913.80 104.06 17093.84 29630.77 73.34 1.73 2.31 5628472 4847366 -13.88 22298747 30394534 36.31 29.81 23601.27 21925.92 -710 93836.41 148279.76 58.02 16.70 0.00 106393 20152 -81.06 535986 124634 -76.75 1.52 318.33 61.98 -80.53 1483.18 36909 -75.11 0.29 0. 13 1562805 831053 -46.82 15293729 4794414 -68.65 4.19 7189.63 12100.14 68.30 83926.68 69662.25 -1700 4.44 0.58 7090 13622 92.13 62699 84283 34.42 0.04 3542.92 3382.32 -4.53 23216.78 25412.79 9.46 0.59 1.48 0 0 NA 0 0 NA NA 149.44 184.06 23.16 185.45 527 01 184.18 1.49 0.54 0 0 NA 0 0 NA NA 1629.56 1640.11 0.65 8589.73 9720.56 13.16 0.57 0.69 7090 13622 92.13 62699 84283 34.42 0.08 1763.92 1558.15 -11.67 14441.60 15165.22 5.01 1.71 0.00 0 0 NA 0 0 NA 0.00 000 000 NA 000 000 NA 0.00 0.00 0 0 NA 0 0 NA 0.00 000 000 NA 000 000 NA 0.00 0.45 24074 381039 1482.78 1395341 2629980 88.48 1.17 2749.85 10796.38 292.62 42778.80 72616.54 69.75 1.68 0.02 0 0 NA 0 0 NA NA 206 433 11002 22.41 68.23 204.46 0.19 0.47 0 0 NA 0 0 NA NA 174421 2495.22 43.06 11264.94 15390.38 36.62 0.90 0.23 4806 3081 -35.89 16076 26375 6406 0.03 331 01 347.42 4.96 1954.73 2450.71 25.37 0.28 0.00 1724 1970 14.27 9061 12107 33.62 0.15 33737 392.78 16.42 1862.31 2279.97 22.43 1. 81 0.01 17544 375988 2043.11 1370204 2591498 89.13 2.26 335.21 7556.64 2154.29 27674.41 52427.25 89.44 3.34 0.26 1484555 1876631 26.41 18136576 19995012 10.25 8.90 10963.68 9341.05 -14.80 95953.11 100500.23 4.74 2.32 0.14 0 0 NA 0 0 NA NA 19.63 604 -69.24 9305 40.21 -56.79 0. 11 0.26 0 0 NA 0 0 NA NA 649.23 310.57 -52.16 3307.56 3184.77 -3.71 0.19 0.87 12958 503417 3784.99 1473337 2951258 100.31 2.89 1898.13 308909 62.74 25831.44 29160.28 12.89 3.28 0.00 0 0 NA 0 0 NA 0.00 000 000 NA 000 000 NA 0.00 316 1471597 1373214 -6.69 16663239 17043754 2.28 14.89 8396.69 5935.35 -29.31 66721.06 68114.97 209 4.34Reinsurance 51 0.28 8578 8035 -6.33 194761 115044 -40.93 0.05 2614.97 4851.14 85.51 25049.74 31456.86 25.58 0.73 0.44 0 0 NA 0 0 NA NA 17.44 6.41 -63.25 47.60 42.99 -9.67 0. 12 0.27 0 0 NA 0 0 NA NA 1572 04 3902.16 148.22 7607.99 16415.47 115.77 0.96 0.06 2991 4318 44.37 12831 17052 32.90 0.02 500.66 606.38 21.12 2071.62 2616.89 26.32 0.29 0.21 0 208 NA 3878 9727 150.83 0. 12 000 0.02 NA 0.39 0.97 15083 0.00 0. 11 5587 3509 -3719 178052 88265 -50.43 0.08 524.83 336.17 -35.95 15322.14 12380.53 -19.20 0.79 0.70 154473 305068 97.49 1858348 1746126 -6.04 0.78 16755.96 5890.02 -64.85 162335.44 82399.36 -49.24 1.90 0.09 0 0 NA 0 0 NA NA 3.19 87.49 2643.79 31.11 132.63 326.36 0.37 0.73 0 0 NA 0 0 NA NA 1890.54 2630.37 39.13 10237.73 15085.06 47.35 0.88 0.06 359 368 251 2871 2971 3.48 0.00 5.13 6.70 3041 35.46 47.36 33.58 0.01 309 125147 44266 -64.63 1337541 1021999 -23.59 12.43 12533.84 220.71 -98.24 133501.72 26959.77 -79.81 21.44 0.00 28967 260434 79907 517936 721156 39.24 0.63 2323.25 2944.76 26.75 18529.43 40174.54 116. 81 2.56 0.25 118035 95534 -19.06 655118 724250 10.55 0.32 7317.17 9350.55 27.79 61040.35 72800.58 19.27 1.68 0.02 0 0 NA 0 0 NA NA 3.11 2.46 -2081 33.54 14.59 -56.50 0.04 0.26 0 0 NA 0 0 NA NA 1378.28 1941.27 4085 7021.33 7588.85 808 0.44 1 04 5374 5789 7.72 34158 35735 4.62 0.04 1101.39 1007.93 -8.49 524460 5831.37 11.19 0.66 0.00 0 0 NA 0 0 NA 0.00 000 0.00 NA 000 0.00 NA 0.00 0.23 112661 89745 -20.34 620960 688515 1088 0.60 4834.39 6398.89 32.36 48740.89 59365.77 21.80 3.78 3.47 5429401 7546623 39.00 32170045 50405031 56.68 22.44 65462.70 95157.51 45.36 473458.48 605821.05 27.96 13.98 337 0 0 NA 0 0 NA NA 117.85 195.47 65.86 594.59 1207.48 103.08 3.41 3.48 0 0 NA 0 0 NA NA 24956.31 28124.08 12.69 163487.54 189728.51 1605 1107 13.94 3991776 4413701 10.57 22646873 33354343 47.28 32.72 33346.67 36635.88 9.86 228249.97 298578.29 3081 33.62 0.00 0 0 NA 0 0 NA 0.00 000 000 NA 000 0.00 NA 0.00 1. 11 1437625 3132922 11792 9523172 17050688 7904 14.89 7041.87 30202.08 328.89 81126.38 116306.77 43.36 7.41 3.12 418452 4043285 866.25 3091260 22323085 622.14 9.94 43955.63 57198.67 30.13 334092.92 442812.33 32.54 10.22 291 0 0 NA 0 0 NA NA 1530.86 379.09 -75.24 1309475 9614.27 -26.58 27.13 3.13 0 0 NA 0 0 NA NA 24811.58 29410.90 18.54 190007.03 230159.92 21.13 13.43 6.88 37375 3780184 1001420 226166 18994062 8298.28 18.63 2587.03 16794.59 549.18 13950.64 86562.96 52049 9.75 000 0 0 NA 0 0 NA 0.00 000 0.00 NA 000 000 NA 0.00 4.00 381077 263101 -30.96 2865094 3329023 16.19 2.91 15026.16 10614.10 -29.36 117040.50 116475.18 -0.48 7.42 0.35 26226 18606 -29.06 207090 215776 4.19 0.10 2569.90 2292.45 -10.80 13911.06 14537.02 4.50 0.34 0.59 0 0 NA 0 0 NA NA 153.86 45.47 -70.45 996.83 471.94 -52.66 1.33 0.34 0 0 NA 0 0 NA NA 1201.72 1116.04 -7.13 7620.76 7806.49 2.44 0.46 0.40 3686 3951 7.19 33694 22256 -33.95 0.02 1157.09 1093.91 -5.46 4890.92 5759.39 17.76 0.65 0.00 22540 14655 -34.98 173396 193520 11.61 2.35 57.23 37.03 -35.30 402.56 499.21 24 01 0.40 0.00 0 0 NA 0 0 NA 0.00 000 0.00 NA 000 0.00 NA 0.00 0.62 31358 114359 264.69 1428370 2124406 48.73 0.95 2908.54 1919.45 -34.01 71613.68 103967.98 45.18 2.40 1.92 0 0 NA 0 0 NA NA 21.42 3.64 -8301 87.38 40.35 -53.83 0. 11 0.55 0 0 NA 0 0 NA NA 996.38 1206.11 21 05 7006.74 7182.52 2.51 0.42 6.48 31358 114219 26424 1407210 2123160 5088 208 1890.74 691.58 -63.42 64096.36 96582.66 50.68 10.88 0. 11 0 140 NA 0 1246 NA 0.02 000 18.12 NA 000 162.46 NA 0. 13 0.00 0 0 NA 21160 0 -100.00 0.00 000 0.00 NA 423.20 000 -10000 0.00 1.21 1053336 1038878 -1.37 8341432 11944119 43.19 5.32 19TT9.84 22295.12 12.72 145439.80 187270.54 28.76 4.32 396 0 0 NA 0 0 NA NA 1514.19 1333.03 -11.96 4011.05 4693.97 17.03 13.25 1.07 0 0 NA 0 0 NA NA 8835.06 10386.35 17.56 36577.27 48140.52 31.61 2.81 IRDAI Journal March 2019IRDAI Journal March 2019 52 Reinsurance 8.04 725227 839339 15.73 6257483 9766138 56.07 9.58 5511.35 7243.97 31.44 5763487 84756.24 4706 9.54 1.67 211698 63748 -69.89 1343004 1202890 -1043 14.63 924.76 246.69 -73.32 6881.48 5002.78 -2730 3.98 1.81 116411 135791 16.65 740945 975091 31.60 085 2994.48 3085.07 303 40335.12 44677.04 1076 2.85 2.25 672992 755675 12.29 3194113 4160176 30.25 1.85 27513.17 38733.86 40.78 174388.22 255923.06 46.75 5.91 008 0 0 NA 0 0 NA NA 356.79 411.95 15.46 2248.45 2463.14 9.55 6.95 2.36 0 0 NA 0 0 NA NA 21105.99 27617.01 3085 120188.18 168600.81 4028 9.84 5.38 19951 20124 087 154786 175100 13.12 017 2525.66 2779.01 1003 17612.70 20072.47 13.97 2.26 000 0 0 NA 0 0 NA 000 000 0.00 NA 000 000 NA 000 2.00 653041 735551 12.63 3039327 3985076 31.12 3.48 3524.74 7925.90 12487 34338.88 64786.65 88.67 4.13 0.74 223400 152907 -31.55 743110 887009 19.36 0.39 43772.67 30852.01 -29.52 106458.55 144200.02 35.45 3.33 007 0 0 NA 0 0 NA NA 4.65 3.63 -21.95 62.90 53.51 -14.92 015 077 0 0 NA 0 0 NA NA 5485.71 5772.24 5.22 27832.92 36441.14 3093 2.13 012 11294 26076 13088 83799 114553 36.70 011 959.75 1605.18 6725 6667.66 9287.23 39.29 1.05 5.45 78347 77762 -075 498288 629301 26.29 765 12141 06 15289.03 25.93 39978.52 69994.81 7508 55.67 000 133759 49069 -63.32 161023 143155 -11.10 013 25181.50 8181.94 -6751 31916.55 28423.33 -1094 1. 81 0.79 166430 110182 -33.80 1244686 3021460 142.75 1.34 2423.78 2129.79 -12.13 49082.00 36614.09 -25.40 0.84 009 0 0 NA 0 0 NA NA 4.50 3.67 -18.26 31.85 30.88 -303 009 082 0 0 NA 0 0 NA NA 1674.68 1708.69 2.03 8982.96 12084.70 34.53 070 006 395 344 -12.91 3103 5058 63.00 000 31.80 15.55 -51.11 327.64 79.25 -75.81 001 058 18057 18681 3.46 28148 43643 55.05 053 18.90 59.39 214.27 -270.57 383.39 -241.70 030 018 147978 91157 -38.40 1213435 2972759 144.99 2.60 693.90 342.48 -5064 40010.13 24035.86 -39.93 1.53 0.00 0 0 NA 0 0 NA 0.00 0.00 0.00 NA 30.54 0.00 -100.00 0.00 000 0 0 NA 0 0 NA NA 0 00 000 NA 465 000 -10000 000 000 0 0 NA 0 0 NA NA 0.00 0.00 NA 25.88 0.00 -10000 000 000 0 0 NA 0 0 NA 000 0.00 0.00 NA 0.00 0.00 NA 000 000 0 0 NA 0 0 NA 000 0 00 000 NA 000 000 NA 000 000 0 0 NA 0 0 NA 0.00 000 0.00 NA 000 000 NA 000 5.32 919522 632058 -31.26 4530335 3851828 -14.98 1.71 29408.61 44610.33 51.69 281987.93 341437.47 21.08 7.88 1.44 0 0 NA 0 0 NA NA 112.94 150.12 32.91 889.31 964.82 8.49 2.72 552 0 0 NA 0 0 NA NA 14207.53 18678.38 31.47 94021.60 125722.67 33.72 733 5.21 41691 42374 1.64 213226 358636 68.20 035 3282.76 6441.99 96.24 10171.10 42006.07 312.99 4.73 005 168815 25331 -84.99 379081 70936 -81.29 086 2240.95 6.20 -99.72 29353.54 73.74 -99.75 006 1.97 709016 564353 -2040 3938028 3422256 -13.10 299 9564.43 19333.65 102.14 147552.39 172670.18 1702 11.00 0.96 722191 561171 -22.30 6394352 4341229 -32.11 1.93 9047.73 7987.34 -11.72 70393.82 54206.69 -23.00 1.25 023 0 0 NA 0 0 NA NA 10.85 25.83 138.12 60.85 136.72 124.68 039 1.00 0 0 NA 0 0 NA NA 1831.27 2445.70 33.55 9572.49 12375.46 29.28 072 069 359661 430334 19.65 2210762 1982028 -1035 1.94 5773.14 4357.39 -24.52 32985.96 26579.54 -19.42 2.99 000 0 0 NA 0 0 NA 000 000 000 NA 000 0 00 NA 000 009 362530 130837 -63.91 4183590 2359201 -43.61 206 1432.46 1158.41 -19.13 2777453 15114.96 -45.58 096 0.33 92942 209081 124.96 420351 666509 58.56 0.30 3565.34 5950.73 66.90 25245.19 23866.44 -5.46 0.55 010 0 0 NA 0 0 NA NA 6.30 8.91 41.44 72.14 60.71 -15.85 017 035 0 0 NA 0 0 NA NA 1207.29 1422.07 1779 7543.10 7363.95 -2.37 043 012 3962 3687 -6.94 22736 24693 8.61 002 416.76 416.10 -016 1857.01 2385.61 28.46 027 000 346 111 -6792 1642 1448 -11. 81 002 76.77 29.86 -61.11 341.69 323.45 -5.34 026 002 88634 205283 131.61 395973 640368 61.72 056 1858.23 4073.80 119.23 15431.25 13732.72 -11.01 087Reinsurance 53 1.22 5747 14421 150.93 116234 155191 33.52 0.07 13818.70 25741.62 86.28 60378.84 135717.84 124.78 3.13 0.10 0 0 NA 0 0 NA NA 1.96 61.43 3026.82 12.70 134.23 956.97 038 1.28 0 0 NA 0 0 NA NA 13788.34 24237.11 75.78 59719.86 126566.34 111.93 738 040 2 6576 328700.00 3 34336 i#######I# 003 0.13 615.61 47897284 -0.14 2790.38 -1944618.94 031 1.77 800 2684 23550 64537 63601 -1.45 0.77 0.53 0.27 -49.62 29.59 28.95 -215 002 015 4945 5161 4.37 51694 57254 1076 005 27.74 827.20 288253 616.84 6197.93 90479 039 25.29 19246949 24132872 25.39 125590537 168352325 34.05 74.94 375208.04 451914.81 20.44 2650203.05 3259324.06 22.98 75.21 18.74 0 0 NA 0 0 NA NA 4260.50 2997.83 -29.64 23169.19 21065.31 -908 59.44 25.63 0 0 NA 0 0 NA NA 144624.81 183402.81 26.81 867080.08 1153453.55 33.03 6729 58.76 11028134 15380725 39.47 58095776 101792061 7521 99.85 87481.87 108397.78 23.91 587715.08 886867.15 5090 99.86 1306 734118 269708 -63.26 4375999 3375218 -22.87 41.04 28652.35 16362.08 -42.89 213564.55 105944.76 -5039 84.27 18.45 7484697 8482439 13.33 63118762 63185046 011 5519 110188.51 140754.32 2774 958674.16 1091993.29 13.91 69.55 74.71 13649137 8640417 -36.70 60542332 56300688 -7.01 25.06 310600.60 213202.45 -31.36 1231968.60 1074217.35 -12.80 24.79 81.26 0 0 NA 0 0 NA NA 3585.68 2146.00 -4015 19506.80 14371.84 -26.32 4056 74.37 0 0 NA 0 0 NA NA 124863.57 119254.04 -4.49 528860.40 560759.87 603 32.71 41.24 34328 36883 744 629694 152981 -75.71 0.15 152.39 311.24 10423 1045.74 1200.05 14.76 014 86.94 1028617 1229866 19.57 3934018 4848782 23.25 58.96 4014.79 4173.77 3.96 12323.94 19782.88 6052 15.73 81.55 12586192 7373668 -41.41 55978620 51298925 -8.36 44.81 177984.17 87317.41 -5094 670231.71 478102.71 -28.67 3045 100.00 32896086 32773289 -0.37 186132869 224653013 20.69 100.00 685808.64 665117.27 -3.02 3882171.65 4333541.41 11.63 100.00 10000 0 0 NA 0 0 NA NA 7846.18 5143.83 -34.44 42675.99 35437.15 -16.96 10000 10000 0 0 NA 0 0 NA NA 269488.38 302656.84 12.31 1395940.47 1714213.43 22.80 10000 10000 11062462 15417608 39.37 58725470 101945042 73.60 10000 87634.26 108709.01 24.05 588760.82 888067.20 5084 10000 10000 1762735 1499574 -14.93 8310017 8224000 -1.04 10000 32667.14 20535.85 -3714 225888.49 125727.64 -44.34 10000 10000 20070889 15856107 -21.00 119097382 114483971 -3.87 10000 288172.68 228071.73 -2086 1628905.87 1570096.00 -3.61 10000 IRDAI Journal March 20199102 hcraM lanruoJ IADRI • • • I -__-_-_-_--_-_-__-_--_-_-_-_-_-__--_-__--_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_ ::::::::----------------I-N--SFULARSAHN-CFEiG -RUERGtUsL-~A~-KTOfoRKYfI WANED-I NDSEUVRE-EL-ROSP-M(PE-rNoTvi sA-fUorTiHifO&R-UITnYa uOdFite cIN:iYDI-A--- -------------------------------------------------------------- ___ • GROSS DIREC -T -- -P ---R --E --M ---I -U --M :-- --U --N --D ---E --R --W ----R --I -T --T --E --N ;-- -F iROR s: -A fnN --cD -. =U orP eT s1O r _ T __H __E __ __M ___O __N ___T __H __ _O ___F r M ___A___R__c__t_·_f )2__ 0__1_____9 _ ___ __________________________________________ _ For The Month of MARCH Upto MARCH 2019 GROWTH MARKET OVER THE SHARE UPTO the CORRESPO S.No. INSURER NDING 2018-19 2017-18 2018-19 2017-18 Month Of PERIOD OF March, 2019 (%) PREVIOUS YEAR(%) 22.60 0.69 141.15 0.92 0.08 15,242.39 1 Acko General Insurance Limited 2 Bajaj Allianz General Insurance Companv Limited 1,021.17 846.30 11,058.96 9,445.22 6.50 17.09 230.42 188.49 2,258.87 1,753.58 1.33 28.81 3 Bharti AAA General Insurance ComPanv Limited Cholamandalam MS General Insurance company 470.16 343.91 4,428.14 4,102.48 2.60 7.94 4 Limited 12.94 35.50 243.06 141.08 0.14 72.29 5 DHFL General Insurance Limited 8.26 1.17 92.55 1.30 0.05 7,019.23 6 Edelweiss General Insurance Companv Limited 7 Future Generali India Insurance ComPany Limited 334.88 172.13 2,554.01 1,906.38 1.50 33.97 480.67 48.22 1,204.98 93.74 0.71 1,185.45 8 Go Diait General Insurance Limited 728.36 652.22 8,612.85 7,289.97 5.06 18.15 9 HDFC ErQo General insurance Company Limited 1c1c1 Lombard General Insurance Company 899.44 855.62 14,488.23 12,356.85 8.52 17.25 10 Limited 906.33 1,004.76 7,002.00 5,631.89 4.12 24.33 11 IFFCO Tokio General Insurance Comoany Limited KotaK Mahindra General Insurance Company 36.29 22.68 301.11 185.39 0.18 62.42 12 Limited 101.00 83.53 1,125.00 816.53 0.66 37.78 13 Liberty General Insurance Limited 125.26 66.34 970.11 526.69 0.57 84.19 14 Maama HDI General Insurance Comoanv Limited 2,146.76 1,588.53 15,178.23 16,193.55 8.92 (6.27) 15 National Insurance Company Limited 19.13 14.56 115.96 83.45 0.07 38.96 16 Raheja QBE General Insurance Companv Limited 511.79 423.70 6,191.03 5,069.08 3.64 22.13 17 Reliance General Insurance ComPanv Limited Royal Sundaram General Insurance Company 283.03 255.99 3,172.63 2,623.44 1.87 20.93 18 Limited 735.80 485.78 4,706.55 3,544.20 2.77 32.80 19 SBI General Insurance Company Limited 284.76 245.12 2,356.35 2,100.76 1.39 12.17 20 Shriram General Insurance Companv Limited 663.92 563.63 7,742.66 5,435.92 4.55 42.44 21 Tata AIG General Insurance Companv Limited 22 The New India Assurance Company Limited 2,550.64 2,533.69 23,910.77 22,718.76 14.06 5.25 1,566.82 1,238.68 13,246.31 11,452.05 7.79 15.67 23 The Oriental Insurance Company Limited 1,587.88 2,091.61 16,384.60 17,429.95 9.63 (6.00) 24 United India Insurance Companv Limited Universal Sompo General Insurance Company 129.61 509.12 2,830.92 2,310.86 1.66 22.51 25 Limited General Insurers Total 15 857.92 14 271.97 150 317.03 133 214.04 88.36 12.84 76.32 34.90 496.80 243.17 0.29 104.30 26 Aditya Birla Health Insurance Companv Limited 345.17 271.42 2,196.92 1,717.51 1.29 27.91 27 Aoollo Munich Health Insurance ComPanv Limited 55.06 50.63 484.82 346.40 0.29 39.96 28 Giana TTK Health Insurance ComPanv Limited 136.95 110.13 947.14 754.47 0.56 25.54 29 Max Bupa Health Insurance Companv Limited 165.40 143.18 1,825.57 1,091.61 1.07 67.24 30 ReliQare Health Insurance Company Limited 954.84 814.85 5,413.48 4,161.11 3.18 30.10 31 Star Health & Allied Insurance Companv Limited 1.88 NA 4.09 NA 0.00 NA 32 Reliance Health Insurance Limited Stand-alone Pvt Health Insurers 1,735.62 1,425.11 11,368.82 8,314.27 6.68 36.74 272.72 655.63 7,178.21 7,893.39 4.22 (9.06) 33 Aaricultural Insurance Company of India Limited 148.27 155.79 1,247.54 1,240.39 0.73 0.58 34 ECGC Limited Soecialized PSU Insurers 420.99 811.42 8,425.75 9,133.78 4.95 -7.75 GRAND TOTAL 18 014.53 16 508.50 170111.60 150 662.09 100.00 12.91 _________• Note: Compiled on the basis of data submitted by the Insurance companies NA: Not Applicable Reinsurance 54Reinsurance 55 9102 hcraM lanruoJ IADRI Guidelines to the contributors of the Journal 1. The article must be original 6. The article must carry the 11. The articles go through blind contribution in the form of name(s) of the author(s), review and are assessed on the essay, research paper or case contact details such as e-mail, parameters such as (a) study of the author. full postal address, telephone / relevance and usefulness of the 2. The article must be an mobile number for article (b) organization of the exclusive contribution for the corresponding on the title page article (structuring, Journal and should not have only and nowhere else. sequencing, construction, flow, been published elsewhere in the 7. A brief write-up about the etc.), (c) depth of the same form. Author must also be sent. discussion, (d) persuasive strength of the article (idea/ 3. The article should ordinarily 8. All the referred material in the argument/articulation), (e) not exceed 2000 words. A article must be appropriately does the article say something longer article/research paper cited. The authors are advised new and is it thought may also be considered if the to follow American provoking, and (f) adequacy of subject so warrants. Psychological Association (APA) reference, source 4. General rules for formatting Style for referencing. acknowledgement and text are as under: 9. All manuscripts shall be sent to bibliography, etc. a) page size A4 the Editor, Insurance 12. A honorarium of Rs. 2000/- Regulatory and Development b) Font: Arial would be given to each of the Authority of India, published articles. c) Line spacing: 1.5 Leading Communication Wing, IRDAI d) Font size: Title Arial bold Sy.No. 115/1, Financial 13. Editor of the Journal has the 14, Sub Titles 12, Body 12, District, Nanakramguda, sole discretion to accept/reject Diagrams, tables, charts 11 Gachibowli, Hyderabad, an article for publication in the or 10. Telangana 500032 along with Journal or to publish it with electronic mail to modification and editing, as it 5. All diagrams, tables and charts <journal@irda.gov.in> with considers appropriate. cited in the text must be the subject line - Contribution 14. The article shall be serially numbered and source to the Journal. accompanied by a should be mentioned clearly wherever required. 10. Electronic version of the ‘ D e c l a r a t i o n - c u m - contribution typed in MS Word Undertaking’ from the file is essential for publication. author(s). Declaration-cum-Undertaking Title of the Article / Essay: ___________________________________ I/We (full name of author(s)) _________ hereby solemnly declare that the work presented in the article / essay/research paper ______________________________________________________________ submitted by me/us for publication in the IRDAI Journal is: 1. Not submitted to any other publications / or website at any point in time for publication 2. An original and own work of the author (i.e. there is no plagiarism) 3. No ideas, processes, results or words of other authors have been presented as author’s own work. 4. No sentence, equation, diagram, table, paragraph or section has been copied verbatim from previous work unless it is placed under quotation marks and duly referenced. 5. There is no fabrication of data or results, which have been compiled / analyzed. 6. The views expressed in the articles/ essay are solely that of the authors’. 7. I/We undertake to accept full responsibility for any mis-statement regarding ownership of this work and also of any adversarial consequences arising upon the publication of the article. Signature of the Author: Name of the Author : Date : ________________ Place : ________________ Contact details: _______________________________________ P.S: Attach one photograph of the author(s) along with the contribution in .jpg format.9102 hcraM lanruoJ IADRI A harassed insurance policyholder can fight for his rights. Approach the Insurance Ombudsman within 12 months of your claim being rejected. There are 17 insurance ombudsmenin across India, looking into complaints. File a complaint with the Insurance Ombudsman, if you have a grievance against an insurer, including if: • You have not received your policy • There is a dispute regarding premium paid or payble • There is delay in claim settlement • Your claim is partially or totally rejected • There is a dispute regarding the terms and conditions of the policy For more information, please visit www.gbic.co.in or www.irdaiindia.org A Public Awareness initiated by; JI\ ~mmnftir, RI f.l 1:m1cfi 3fu fcrcfim ~ 4i! INSURANCE REGULATORY AND irJai DEVELOPMENT AUTHORITY OF INDIA Promoting Insurance Protecting Insured www .irdai.gov .in Reinsurance 56