Valueattics Reinsurance Becomes India’s First Private Reinsurer, Ending GIC Re’s Monopoly

In a historic move, the Insurance Regulatory and Development Authority of India (IRDAI) granted Valueattics Reinsurance, backed by Prem Watsa and Kamesh Goyal, the first private reinsurance license in India. This development marks a significant step towards fostering competition in the reinsurance sector, ending GIC Re’s monopoly that has existed since 1972. The approval was granted during Debasish Panda’s final board meeting as IRDAI Chairperson on March 12, 2025.

Key Highlights

India’s First Private Reinsurer

• Valueattics Reinsurance becomes the first private reinsurer in India.
• Backed by Prem Watsa’s Fairfax Financial Holdings (through FAL Corporation) and Kamesh Goyal’s Oben Ventures LLP.

Current Reinsurance Market in India

• GIC Re, a public-sector entity, was the only reinsurer in India until now.
• 13 foreign reinsurance branches (FRBs) like Munich Re, Swiss Re, and Lloyd’s of London operate in India.

Significance of IRDAI’s Approval

• Marks a major reform in the insurance sector, promoting competition and efficiency.
• Valueattics received the “R2” approval, a step closer to commencing operations.
• The company will begin with an initial paid-up capital of ₹210 crore.

Challenges and Opportunities for Valueattics Reinsurance

• Reinsurance is a capital-intensive business requiring technical expertise and IRDAI-approved ratings.
• Will need to expand capital strength as it enters the international market.
• Opportunity to offer full-spectrum risk coverage through its Go Digit group (general insurance, life insurance, and reinsurance).

GIC Re’s Current Status

• Holds the “first right to refusal” and obligatory cession rights.
• 39% of GIC Re’s domestic earnings come from obligatory business and 61% from non-obligatory business.

IRDAI’s 129th Board Meeting Decisions (March 12, 2025)

• Approval of Valueattics Reinsurance.
• Review of the Bima Sugam e-marketplace.
• Progress on Risk-Based Capital (RBC) and Risk-Based Supervisory Framework.
• Approval of the 2025-26 IRDAI budget.