IRDAI Grants License to First Private Reinsurance Firm
Valueattics Re, a company promoted by FAL Corporation, backed by Prem Watsa, and GoDigit Founder Kamesh Goyal, has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to begin reinsurance operations.
This marks a pioneering development in the Indian insurance landscape, as Valueattics Re becomes the first private reinsurer to be granted a license. Currently, the public sector General Insurance Corporation (GIC Re) is the sole reinsurance provider operating in the country.
Reinsurance companies play a vital role in the insurance industry. They provide insurance to other insurance companies, functioning as a “second level” of insurance. Their primary function is to manage and transfer risk, particularly concerning large-scale or catastrophic losses, thereby stabilizing the broader insurance market.
With this approval, Kamesh Goyal and Fairfax, through their respective ventures, will become the first promoters in India to hold licenses to operate general insurance, life insurance, and reinsurance businesses. This demonstrates a significant expansion of their presence within India’s financial sector.
