Surety bonds to be the next big reinsurance opportunity

General Insurance Corporation of India (GIC Re), the country's largest reinsurer, is ramping up its international business following the reinstatement of credit rating late last year.

- Ramaswamy Narayanan, Chairman & MD, GIC Re

In an interview with Narayanan V, chairman and managing director Ramaswamy Narayanan outlines the global growth strategy and the emerging segments it is betting on in the domestic market. Excerpts:

Reinsurance premiums in India are expected to touch ₹99,000 crore by FY26. Which segments are likely to drive this growth?

A majority of it will come from property insurance, because it is one class that lends itself to reinsurance. Property values are huge and company capacities are small—that's where reinsurance steps in. Aviation is another segment where retention by insurance companies is very small; it's normally more reinsurance-driven. Health and motor are retail classes in the insurance market. They contribute the highest in terms of premium share, but only a small portion of that comes into the reinsurance market, because these are small-ticket businesses that most insurance companies can manage to retain.