The Insurance Regulatory and Development Authority of India (IRDAI) has approved the R2 license for Valueattics Reinsurance, marking it as the first private sector reinsurance company in the country.
Valueattics Re, backed by Canadian billionaire Prem Watsa’s Fairfax group and Kamesh Goyal, Founder and Chairman of Go Digit General Insurance Ltd, will reportedly commence operations with an initial paid-up capital of Rs 210 crore.
For context, an R2 license is the second stage of regulatory approval required to establish an insurance or reinsurance company in India. It is granted by the IRDAI after a company completes the initial scrutiny process.
“Approval was accorded to grant a Certificate of Registration to M/s Valuettics Reinsurance Ltd. It is the first reinsurer to be granted registration to carry out exclusively reinsurance business in the revamped regulatory landscape. It marks a significant step in fostering competition in the reinsurance sector,” the IRDAI stated.
As Reinsurance News understands, this move aligns with IRDAI’s broader efforts to liberalise the reinsurance sector, attract foreign investment, and improve overall market efficiency.
In 2024, the IRDAI introduced a series of regulatory changes to strengthen India’s reinsurance sector.
The Authority’s Chairman, Debashish Panda, later advocated for 100% foreign direct investment in the insurance sector to achieve the goal of ‘insurance for all’ by 2047.
Readers familiar with these pages will know that state-backed GIC Re has long maintained a dominant position as India’s primary reinsurer.
With Valueattics Re entering the market, backed by strong financial support, GIC Re is now poised to face increased competition.
This is likely to drive GIC Re to innovate, refine its pricing strategies, and enhance its service offerings to sustain its market share.
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