"Located in Mumbai, AGCS India will target commercial reinsurance with a new reinsurance branch license", as the company announced in a statement. Following the Indian government's move to amend regulations and open the reinsurance market to foreign companies in 2016, AGCS received the necessary reinsurance license from the Insurance Regulatory and Development Authority of India (IRDAI) earlier last year.
CB Murali - Indian national, has over 35 years of property & casualty insurance experience in both international and local markets, previously the head of Bajaj Allianz's Global Risks division - will assume the role of CEO of AGCS India.
AGCS sees the India corporate insurance market as holding significant potential due to its size, low penetration rates, and expected growth of the economy. India is the world's 11th largest insurance market and 5th in Asia behind China, Japan, South Korea, and Taiwan by premium volume. However, industry estimates show that India only ranks 73rd in the world with a meagre non-life insurance penetration rate of 0.93% of GDP, suggesting opportunities for future growth as the market matures. Indeed, industry estimates have predicted reinsurance premiums in India to increase at 11-14% CAGR, reaching USD 11 billion in premiums by 2022.
AGCS India Branch will initially offer facultative, proportional, and non-proportional reinsurance solutions on the following lines of business: Property, Liability, Marine, Financial Lines, Construction & Engineering, and Energy. In particular, AGCS sees opportunities in large scale construction projects under the USD 106 billion Bharatmala infrastructure development plan, as well as strong contributions from the automotive, electronics and high-tech communication industries. AGCS also expects particular demand for reinsurance capacity for cyber and initial public offering (IPO) insurance, offered under the Financial Lines line of business.
AGCS is currently present in 11 countries and 16 cities in the region, a list that also includes Singapore, Hong Kong, Japan, China, Indonesia, Brunei, Myanmar, Australia, and New Zealand. Asia Pacific business contributed 6.3% to AGCS overall global premium volume of EUR 7.4 billion in 2017.