Opportunities but also risks in India

As the Indian market opens up to foreign reinsurers, it can offer opportunities for long-term growth but also risks for reinsurers that are unprepared. Only players with technical expertise and a long-term plan will prosper, says Philip Chung, director at S&P Global Ratings.

As new laws offer foreign reinsurers greater access to the Indian market, opportunities will present themselves for companies with the right approach which are willing to invest for the long term.
But there are also many risks in a market that has experienced underwriting losses for over a decade.

That is the view of Philip Chung, director at S&P Global Ratings, who notes that while some foreign reinsurers already have a physical presence in India through service companies or a representative office, the liberalisation of the sector means they can open branches and more proactively operate and hire personnel.