Laurent Rousseau, CEO of Europe, IMEA and Global Capital Solutions, Guy Carpenter
33% of the overall Indiancapacity (premium) is still provided by cross boarder reinsurers(CBRs). CBRs play a critical role particularly in specialty lines (e.g. Terrorism, Offshore/Onshore Energy, large Aviation programs, Marine Hull, Hydro projects, Arts/Specie Insurance, Cyber and M&A).The issuance of collaterals or premium deposit reserves for CBRs may result into increased cost of reinsurance, concentration of risks among a limited pool of reinsurers in the country and potentially unplaced risks, if Indian capacity is insufficient or on specialized risks on which limited/ no capacity exists in the Indian market
What kind of business Guy Carpenter(GC) does in India and what is the size of business GC does in India?
Guy Carpenter India is a multinational broker operating in the Indian market since
2011 with a leading market share across all lines of business in the Non – Life and
Life segments. Our services in India encompass but are not limited to – Reinsurance
broking, strategic advisory, capital management and analytics tools and solutions.
Under the leadership of Nymphea Batra, CEO for India, we serve a diverse client
base of insurers and reinsurers across the Indian market.
What are the GC strategies to grow its business in India?
Guy Carpenter India is committed to be the trusted business advisor in the
Reinsurance marketplace. We have a multi -faceted strategy that aligns with the
country’s dynamic and diverse insurance landscape. Our approach focusses on
strategic advisory services, advanced analytical tools, navigating a complex
regulatory environment, and leveraging GC’s global expertise and deep insights to
access and provide innovative risk transfer and capital management solutions to
make our clients more successful in the Indian market.
Which are the areas Indian market needs larger capacity? Which among-GIC Re,
Foreign Reinsurers Branchers in India and Cross Boarder Reinsurers(CBRs) are
serving the Indian market better? What more you expect from them?
The Indian insurance market is experiencing rapid growth, thereby increased
demand for reinsurance capacity agnostic of sectors. That being said, India’s
vulnerability to natural disasters such as floods, cyclones and earthquakes
necessitate substantial catastrophe reinsurance support to manage potential large-
scale losses.
Following regulatory amendments by the Insurance Regulatory and Development
Authority of India (IRDAI) in 2015, several foreign reinsurers established branch
offices in India. This move enhanced the market’s capacity and introduced global
expertise. Offshore reinsurers, operating from international hubs, have also been
instrumental in providing additional capacity, especially for specialized industries and
high-value risks.
They offer diverse risk transfer solutions, complementing the domestic reinsurance framework and diversification. While all reinsurance entities contribute to the Indian market’s strength, to further support the exponential growth and in line with the regulator’s vision of “Insurance for All by 2047”, reinsurers can further support by focusing on innovation, capacity enhancement, technical expertise and claims support.
What are the innovative products GC has brought or is planning to bring to Indian
market?
Guy Carpenter is dedicated to bringing innovative solutions which serve the growth
ambitions of insurers in the non- life and life businesses. Whether these solutions
include launching advanced analytical tools such as probabilistic flood models or
InsureTech integration leveraging AI and predictive analytics to improve underwriting
controls, much of our innovation is driven by client needs and on-demand
reinsurance solutions. Through these innovation reinsurance and capital management solutions, we aim to empower our clients in India with a competitive edge in their business.
Indian insurance regulator IRDAI has come out with new regulations for Cross
Boarder Reinsurers(CBRs) to be implemented from Apr 1,2025. Will it have a
positive impact on Indian market? Do you want any changes in this?
GIC Re, Foreign Reinsurance Branches (FRBs) and Cross Border Reinsurers
(CBRs) have all played a critical role in providing solutions, reinsurance capacity and
service to the Indian insurance industry.
The Regulatory regime has also evolved over time. The Regulations support priority of cession to GIC Re and FRBs. 33% of the overall capacity (premium) is still provided by CBRs. CBRs play a critical role particularly in specialty lines (e.g. Terrorism, Offshore/Onshore Energy, large Aviation programs, Marine Hull, Hydro projects, Arts/Specie Insurance, Cyber and M&A).
The issuance of collaterals or premium deposit reserves for CBRs may result into increased cost of reinsurance, concentration of risks among a limited pool of reinsurers in the country and potentially unplaced risks, if Indian capacity is insufficient or on specialized risks on which limited/ no capacity exists in the Indian market.
The placement of reinsurance with CBRs with a rating equal to or less than BBB is around 10% of the overall cessions placed outside India. There are many alternative options which are more inclusive – and as a example, maybe to have collateral requirements only for placements equal to or below BBB ratings or have a risk charge basis for the rating of reinsurers, as in other world markets.
Do you have any plans to acquire any companies In India?
Guy Carpenter India’s primary focus remains on partnering with our clients and
markets on their risk and capital needs and supporting a sustainable market.
Acquisitions remain an option if a compelling opportunity arises that aligns with our
long-term vision.