Global Risk Solutions

The Indian insurance market has always been - how should I say? - a bit of a challenge.  With tariff wordings, cheap rates and local retentions.  Many clients elect to insure on a stand-alone basis due to the competitive rates, especially on fire risks.

Global insurers, until recently, could not include India into global programmes in the same way they could for other countries, relying on the Difference in Conditions/Difference in Limits clauses in the master contract.  This in itself causes problems when a loss occurs.

Local insurers are obliged to retain as much risk as possible in India, ceding a compulsory 10% cession to the GIC (General Insurance Corporation).

More and more manufacturing and outsourcing is moving to India from Europe and the USA.  More and more of our clients want control of the local insurance arrangements, the widest possible wordings with the maximum ceded back to their master programme and Captive.

Some risks qualify as 'Mega Risks' - if your largest location has a property/business interruption sum insured above Crore 2,500 (GBP 375,000,000) an application can be made to the regulators to qualify for a Mega Policy.
 
A Mega Policy allows the Insured to combine various coverages into one policy, it does not need to be a tariff wording and allows between 70% and 87.5% of the premium and risk to be exported. 

NOTE: 1 Crore = Rupees 10,000,000 (GBP 149,254)