Sole Indian reinsurer General Insurance Corporation (GIC) is actively evaluating the feasibility of issuance of catastrophe bonds which may be floated in a different country.
A spokesperson for the company said it believes that catastrophe bonds will help GIC Re save on its reinsurance cost. The approval process is underway.
Dependent on the nature of the bond instrument, it may be floated in a particular region only and not necessarily India.
“Given the time line required for a project of this nature, it could take months before it can potentially materialise into actual market issuance if it is indeed found feasible for GIC Re,” said a spokesperson.