Foreign reinsurers expand their presence in India

A study by GlobalData has shown that licensed foreign reinsurers in India have almost doubled their market share from 25.8% in 2019 to 49% in the 2023-2024 financial year ended March 31, 2024. This share is set to exceed 50% in 2025.

The Indian reinsurance market is dominated by five players, four of them foreign (Munich Re, Swiss Re, SCOR and Hannover Re) and one local, GIC Re. These companies accounted for 95.4% of total premiums written in the country in 2023-2024.

GIC Re has maintained its leading position in the industry, with 51% of the total portfolio. However, this market share has fallen sharply compared with 2019 (74.2%).

Foreign reinsurers continue to expand their presence in the country and have consequently become a threat to GIC Re.

This expansion is largely being driven by a favorable regulatory environment, competitive rates, flexible terms and conditions compared with those of GIC Re, and growth in the economy and insurance penetration.

According to GlobalData, the Indian reinsurance market is expected to grow at a CAGR of 7.3%, reaching 832.8 billion INR (9.7 billion USD) in 2029.