Indian insurers may have to tackle pricey reinsurance amidst global crises

Impact of global hardening of rates on India difficult to predict, say analysts

The Indian insurance market in April is likely to feel the heat of higher reinsurance rates that have shot up globally due to adverse weather events, the war in Ukraine and macroeconomic shocks, said experts tracking the trend.

Primary insurers generally transfer a portion of their risk portfolios to reinsurers by paying a premium to reduce the likelihood of having to make a large obligation in the form of a claim.

Globally, primary insurers and reinsurers renew contracts between them in January. Reports say that reinsurance rates this season have touched multi-year highs.

In India, renewals take place in April.