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India.com
16 hours ago
- Business
- India.com
Masterstroke by Mukesh Ambani, Jio-Allianz, Valueattics Re announce their entry in Reinsurance Market, to disrupt Rs 500000000000 market by...
After leaving Bajaj, this top German Insurance Giant joins hands with Mukesh Ambani, it is..., plans to... New Delhi: In a major development that promises to disrupt India's reinsurance sector, Jio-Allianz and Valueattics Re—a joint venture between Fairfax's Prem Watsa and Kamesh Goyal's Oben Ventures—have announced their entry into the market, challenging the might of state-run GIC Re in the country's Rs 50,000-crore reinsurance business. It is important to note that GIC Re currently has a 51% market share, while the rest is distributed among 11 foreign reinsurance branches. Jio Financial Services (JFSL) and Allianz Group (Allianz), on Friday, through its wholly owned subsidiary Allianz Europe BV, announced they have entered into a binding agreement to form a 50:50 domestic reinsurance joint venture in the insurance market in India. Here are some of the key details: Jio Financial Services (JFSL) and Allianz Group (Allianz) announced they have entered into a binding agreement to form a 50:50 domestic reinsurance joint venture in the insurance market in India. The two companies entered into a non-binding agreement for setting up equally owned joint ventures for both general and life insurance businesses in India. Both the companies will challenge the dominance of state-run GIC Re in the country's Rs 50,000-crore reinsurance business. Regulatory norms such as mandatory cession and order of preference could benefit the new entrants Regulations mandate Indian insurers to cede 4 percent of each policy to GIC Re. It is important to note that this would be Allianz's third reinsurance entity after its existing branches under the Foreign Reinsurer Branch (FRB) and International Financial Services Centre Insurance Office (IIO) regimes. This proposed company would be an India-incorporated entity with a paid-up capital of a minimum Rs 200 crore. While the other two reinsurance entities focus on specialized reinsurance and specific risk segments, the third entity—an Indian reinsurer—will operate with an independent balance sheet and have the flexibility to offer both treaty and facultative reinsurance. All You Need to Know About GIC Re GIC Re is a national reinsurer The company has long been the anchor of the domestic reinsurance market. In 2023-24, a total reinsurance premium of Rs 62,113 crore was collected by Indian reinsurer GIC Re and foreign reinsurance branches (FRBs). About 81 percent of this business came from within India, which is Rs 50,553 crore. Of this Indian business, GIC Re handled around 51 percent, while the remaining 49 percent was done by the foreign reinsurance branches including global reinsurers like Lloyd's. It is important to note that the Reinsurers operating from within India, like Jio-Allianz and Valueattics Re could get preferential access over cross-border reinsurers in the order of preference mandated by IRDAI. What Does the IRDAI guidelines say? As per IRDAI guidelines, every Indian general insurer must cede 4% of their sum insured on each policy to GIC Re- the Indian reinsurer under compulsory cession rules.
Time of India
2 days ago
- Business
- Time of India
Jio-Allianz, Fairfax-backed Valueattics Re set to shake up India's Rs 50,000-cr reinsurance market
India's reinsurance sector is set for disruption as Jio-Allianz and Valueattics Re-a JV between Fairfax's Prem Watsa and Kamesh Goyal 's Oben Ventures-enter the market, challenging the dominance of state-run GIC Re in the country's ₹50,000-crore reinsurance business. GIC Re currently has a 51% market share, while the rest is distributed among 11 foreign reinsurance branches. On Friday, Jio Financial Services (JFSL) and Allianz Group (Allianz), through its wholly owned subsidiary Allianz Europe BV, announced they have entered into a binding agreement to form a 50:50 domestic reinsurance joint venture in the insurance market in India. Explore courses from Top Institutes in Select a Course Category Operations Management Technology Product Management Degree CXO healthcare Digital Marketing MBA Design Thinking Data Analytics Project Management Leadership Healthcare PGDM Data Science Public Policy others Data Science Artificial Intelligence Others Finance Cybersecurity Management Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details The two companies also entered into a non-binding agreement for setting up equally owned joint ventures for both general and life insurance businesses in India. ET Bureau Regulatory norms such as mandatory cession and order of preference could benefit the new entrants, giving them an edge over other reinsurers. Regulations mandate Indian insurers to cede 4% of each policy to GIC Re. This would be Allianz's third reinsurance entity after its existing branches under the Foreign Reinsurer Branch (FRB) and International Financial Services Centre Insurance Office (IIO) regimes. This proposed company would be an India-incorporated entity with a paid-up capital of a minimum ₹200 crore. While the other two reinsurance entities are focused on speciality reinsurance and certain lines of risks, the third entity, which will be an Indian reinsurer would have a standalone balance sheet and the flexibility to do treaty and facultative reinsurance. GIC Re, the national reinsurer, has long been the anchor of the domestic reinsurance market. In 2023-24, a total reinsurance premium of ₹62,113 crore was collected by Indian reinsurer GIC Re and foreign reinsurance branches (FRBs). About 81% of this business came from within India, which is ₹50,553 crore. Of this Indian business, GIC Re handled around 51%, while the remaining 49% was done by the foreign reinsurance branches including global reinsurers like Lloyd's. Reinsurers operating from within India, like Jio-Allianz and Valueattics Re could get preferential access over cross-border reinsurers in the order of preference mandated by IRDAI. As per IRDAI guidelines, every Indian general insurer must cede 4% of their sum insured on each policy to GIC Re- the Indian reinsurer under compulsory cession rules. While GIC enjoys 4% mandatory cession, this is subject to annual review. Also, reinsurers operating from within India, like Jio-Allianz and Valueattics Re, could enjoy preferential access over cross-border reinsurers in the order of preference mandated by IRDAI. The entry of Jio-Allianz could bring the scale, digital reach, and capital heft of Reliance Industries, while Valueattics Re, headed by Canadian-Indian billionaire Prem Watsa, entered the Indian reinsurance market in March this year and is expected to tap into Fairfax's global expertise and balance sheet strength, further accelerating competition in the domestic landscape.
Time of India
13-05-2025
- Business
- Time of India
Foreign oil firms may get overseas arbitration option
New Delhi: New exploration contracts will require Indian oil companies to resolve contractual disputes with the government through arbitration exclusively in India, while allowing foreign firms to opt for overseas arbitration, according to an official. The oil ministry is currently framing new rules for the exploration sector and working on a new model contract for future winners of exploration licences in the country. According to the draft rules, all disputes and claims related to petroleum leases or contracts are to be resolved through arbitration, either in India or overseas. "In case of a licensee, lessee or contractor which is an entity incorporated under the laws of a foreign jurisdiction, the seat of such arbitration must be of a neutral jurisdiction," the draft states. However, it is less explicit about requirements for India-incorporated firms. An official clarified that the option of overseas arbitration will not be available to Indian companies. Foreign oil firms have been vocal in demanding " neutral arbitration "-a seat of arbitration not located in either party's home country. They consider this essential to protecting their investments, as it helps insulate the arbitration process from domestic government influence. The new contracts will allow foreign players to choose from about half a dozen arbitration venues, excluding those in India and the foreign company's home country. London, The Hague, Paris, Singapore and Hong Kong are among the leading international arbitration seats. Past disputes between oilfield developers and the Indian government show that the arbitration process can be lengthy and costly. Arbitral awards are often challenged in Indian courts, leading to years of delay. For instance, arbitration over cost recovery in the Panna-Mukta-Tapti fields between the government and contractors-Reliance Industries and Shell-has dragged on for more than a decade. Another legal battle between Reliance Industries and the government over gas extraction in the KG Basin field licensed to ONGC has also been ongoing for several years.
Time of India
12-05-2025
- Business
- Time of India
Foreign oil firms may get overseas arbitration option
New Delhi: New exploration contracts will require Indian oil companies to resolve contractual disputes with the government through arbitration exclusively in India, while allowing foreign firms to opt for overseas arbitration, according to an official. #Operation Sindoor The damage done at Pak bases as India strikes to avenge Pahalgam Why Pakistan pleaded to end hostilities Kashmir's Pahalgam sparks Karachi's nightmare The oil ministry is currently framing new rules for the exploration sector and working on a new model contract for future winners of exploration licences in the country. According to the draft rules, all disputes and claims related to petroleum leases or contracts are to be resolved through arbitration, either in India or overseas. "In case of a licensee, lessee or contractor which is an entity incorporated under the laws of a foreign jurisdiction, the seat of such arbitration must be of a neutral jurisdiction," the draft states. However, it is less explicit about requirements for India-incorporated firms. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. An official clarified that the option of overseas arbitration will not be available to Indian companies. Foreign oil firms have been vocal in demanding " neutral arbitration "-a seat of arbitration not located in either party's home country. They consider this essential to protecting their investments, as it helps insulate the arbitration process from domestic government influence. The new contracts will allow foreign players to choose from about half a dozen arbitration venues, excluding those in India and the foreign company's home country. London, The Hague, Paris, Singapore and Hong Kong are among the leading international arbitration seats. Past disputes between oilfield developers and the Indian government show that the arbitration process can be lengthy and costly. Arbitral awards are often challenged in Indian courts, leading to years of delay. For instance, arbitration over cost recovery in the Panna-Mukta-Tapti fields between the government and contractors-Reliance Industries and Shell-has dragged on for more than a decade. Another legal battle between Reliance Industries and the government over gas extraction in the KG Basin field licensed to ONGC has also been ongoing for several years.
