Industry Insurance Services Reinsurance Headquarters Mumbai | Area served Worldwide Founded 22 November 1972 Owner Government of India | |
Type Public-sector undertaking Number of locations Dubai, Kuala Lumpur, London, Moscow Key people Alice Vaidyan, Chairman cum Managing Director (CMD) Revenue 184.4 billion INR (2015–2016) Assets under management 795.5 billion INR (2015–2016) Subsidiaries GIC Re South Africa Ltd., GIC of India (UK Branch), GIC Asset Management Company Ltd. Locations Dubai, Kuala Lumpur, London, Moscow | ||
GIC of India (GIC Re) was the sole reinsurance company in the Indian insurance market with over four decades of experience until the insurance market was open to foreign reinsurance players by late 2016 including companies from Germany, Switzerland and France.
GIC Re has its registered office and headquarters in Mumbai.
History
The entire general insurance business in India was nationalized by the Government of India (GOI) through the General Insurance Business (Nationalization) Act (GIBNA) of 1972. 55 Indian insurance companies and 52 other general insurance operations of other companies were nationalized.
The General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of GIBNA. It was incorporated on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares. GIC was formed to control and operate the business of general insurance in India.
The GOI transferred all the assets and operations of the nationalized general insurance companies to GIC and other public-sector insurance companies. After a process of mergers and consolidation, GIC was re-organized with four fully owned subsidiary companies: National Insurance Company Limited, New India Assurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company.
GIC and its subsidiaries had a monopoly on the general insurance business in India until the landmark Insurance Regulatory and Development Authority Act (IRDA Act) of 1999 came into effect on 19 April 2000. This act also amended the GIBNA Act and Insurance Act of 1938. The act along with the amendments ended the monopoly of GIC and its subsidiaries and liberalized the insurance business in India.
In November 2000, GIC was notified as India's Re insurer, but its supervisory role over its subsidiaries was ended. This was followed by the General Insurance Business (Nationalization) Amendment Act of 2002. Coming into effect from 21 March 2003, this amendment ended GIC's role as a holding company of its subsidiaries. The ownership of the subsidiaries was transferred to the Government of India.
As a result of these reforms, GIC became the sole Re-Insurer in India, and is now called GIC Re. Indian insurance companies are required by law to cede 5% of every policy value to GIC Re w.e.f. 1 April 2013, subject to some limitations and exceptions. GIC Re has diversified its operations and is now emerging as an important Re-Insurer in SAARC countries, Southeast Asia, Middle East and Africa, Europe and America. As an Indian Reinsurer with global footprint GIC Re has expanded its international operations through branches in London, Moscow, Dubai and Kuala Lumpur and is further planning to establish offices in key regions.
As of 2012 GIC Re ranked 14th largest Re insurer and 4th largest Aviation Re insurer in the world (S&P Ratings). GIC Re has a rating of A- (Excellent) from A. M. Best for its financial strength. As of 2014 GIC Re has been assigned National Scale ‘AAA’ Reliability Rating And Global Scale ‘iA-’ Credit Rating by Russian National Rating Agency (NRA).