New India Assurance to set up reinsurance hub in India

Last Updated: May 05, 2015 | 337 Views
New India Assurance (NIA), India’s biggest public sector insurer, plans to setup reinsurance office in GIFT (Gujarat International Finance Tec) City. By setting up the reinsurance company in India, NIA would be able to provide global insurance coverage without currency risk. The money received through premiums can be retained in foreign currency accounts, thereby, boosting business globally.

New India chairman Mr. G Srinivasan said, "The insurance regulator has already come out with norms for insurance companies that want to set up an office in GIFT. We are already doing reinsurance business from our London office where we get business from Lloyds (which works like an insurance exchange). With an office here, we can write business from all parts of the world," 

NIA, which operates both in India and foreign countries, is the largest general insurance company in India. It has a huge distribution network, through some of the leading public sector Indian Banks, such as, State Bank of India, Central Bank of India, Corporation Bank and United Western Bank. Its plan to set up reinsurance office in India, would definitely eliminate currency risks when claims are paid.