India’s insurance regulator has granted approval to Valueattics Reinsurance Ltd., marking the country’s first reinsurer dedicated exclusively to reinsurance business.
The Insurance Regulatory and Development Authority of India (IRDAI) issued the certificate of registration, the regulator said in a statement.
The approval was granted under India’s updated regulatory framework, which IRDAI said is intended to foster competition in the reinsurance sector.
Valueattics Reinsurance Ltd. is backed by Prem Watsa, the Canadian billionaire investor of Indian origin who is known for his leadership in the financial sector. Watsa is the founder, chairman, and CEO of Toronto-based Fairfax Financial Holdings, a firm specializing in insurance, reinsurance, and investment management.
While this is the first official reinsurer in the country, India also has a state reinsurer: GIC Re. The sector has experienced significant growth and transformation in recent years, driven by economic expansion, regulatory reforms, and technological advancements.
In 2024, India's reinsurance market reached approximately US$19.2 billion. Projections indicate that the market could grow to US$41.5 billion by 2033, reflecting a compound annual growth rate (CAGR) of 8.92% during the period from 2025 to 2033.
Valueattics Re’s entry to the market is also expected to bolster India’s defense against natural catastrophes, with the country highly susceptible to natural disasters such as earthquakes, floods, and cyclones.
Swiss Re notes that the re/insurance protection gap for these events is significant, with approximately 93% of exposures remaining uninsured. This gap presents both a challenge and an opportunity for the reinsurance sector to enhance resilience.
IRDAI also identified three insurers as “Domestic Systemically Important Insurers” for the 2024-2025 fiscal year. The companies designated under this classification are Life Insurance Corporation of India, New India Assurance Co. Ltd, and General Insurance Corporation of India.
Separately, the Indian government has approved an increase in the foreign direct investment limit for the insurance sector, raising the cap from 74% to 100%. The change was included in the country’s 2025-2026 budget, which was announced on Feb. 11.
The budget, presented by Finance and Corporate Affairs Minister Nirmala Sitharaman, includes proposals for regulatory coordination and the development of pension products. It outlines reforms in six key areas aimed at strengthening India’s economic growth and global competitiveness over the next five years.
The financial sector, including insurance, pensions, mergers, and bilateral investment treaties, is one of the targeted areas.
Under the new FDI framework, the enhanced 100% foreign investment limit will be available to insurance companies that reinvest their entire premium earnings within India, according to the government.
What are your thoughts on this story? Please feel free to share your comments below.
