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Mumbai, Jan. 10 Export Credit Guarantee Corporation of India has sought government approval for offering ‘inward reinsurance’.

Inward reinsurance is the term used for reinsurance offered by an insurance company.

Normally insurance companies reinsure their business to reduce their risk. In inward reinsurance, an insurance company itself offers reinsurance to share the risk of another insurer.

“We applied for approval from the Government six months ago and hope to be a more competitive by doing inward reinsurance. We have enough capacity to accept reinsurance,” said Mr A.V. Muralidharan, Chairman, Export Credit Guarantee Corporation of India. He was speaking at the ‘Insurance Summit 2008’, organised by National Insurance Academy.

“To illustrate, if the Denmark-based Suzlon secures a contract in Australia and wants a part of the project to be executed by Suzlon India, then ECGC would like to share the risk of the global reinsurance cover. We would also like go one step further and offer reinsurance for foreign projects as well,” Mr Muralidharan said.

The corporation has been able to maintain adequate capital adequacy that is 11.5 times more than required. It currently has a paid up capital of Rs 800 crore, which could be raised to Rs 1,000 crore.

In the past three months, the corporation has also started offering credit insurance to domestic exports, Mr Muralidharan said.

In the first eight months of the fiscal 2007-08, ECGC has reported gross underwritten premium of Rs 420 crore, against Rs 392 crore in the previous year.

More Stories on : General Insurance | Exports & Imports

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