IRDAI clears Allianz Jio Reinsurance, Kiwi General Insurance
The Insurance Regulatory and Development Authority of India has approved two new insurance entities—Allianz Jio Reinsurance Limited and Kiwi General Insurance Limited—to commence operations in India.
The approvals were granted during the regulator’s 134th board meeting, enabling one reinsurer and one general insurer to enter the market under the applicable regulatory framework. This move is expected to enhance competition and capacity in both reinsurance and general insurance segments.
The board also discussed regulatory changes following the implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, and approved the drafting of new regulations for stakeholder consultation to align the sector with recent reforms.
HDFC ERGO appoints Parthanil Ghosh as MD & CEO
HDFC ERGO General Insurance has appointed Parthanil Ghosh as its new Managing Director and Chief Executive Officer, effective April 16, 2026, subject to regulatory approvals.
Ghosh, who succeeds Anuj Tyagi, brings over 30 years of experience in financial services, including more than 16 years in general insurance. He has been associated with HDFC ERGO since 2016 and currently serves as Executive Director.
During his tenure, he has handled multiple business functions such as underwriting, claims, reinsurance strategy, retail and commercial lines, and technology initiatives, positioning him well to lead the company’s next phase of growth.
Banks, insurers push for higher cover under social schemes
Public sector banks and insurance companies have urged the government to increase the sum assured under key social security schemes such as PMJJBY and PMSBY.
The proposal was discussed in a meeting convened by the Department of Financial Services, with participation from Insurance Regulatory and Development Authority of India and other ministries.
Stakeholders highlighted that while coverage under these schemes has expanded significantly, the current sum assured may no longer be adequate due to inflation and rising household risks. The move aligns with the broader goal of achieving “Insurance for All by 2047.”
Actuary demand surges amid IFRS and RBC transition
Demand for actuaries in India’s insurance sector is rising sharply as companies prepare for major regulatory and accounting transitions.
The industry is moving towards IFRS 17 (Ind AS 117) and a risk-based capital (RBC) framework, replacing the current factor-based solvency regime. The Insurance Regulatory and Development Authority of India has mandated IFRS implementation by FY27.
These changes require advanced risk modelling, valuation and reporting capabilities, significantly increasing the need for skilled actuarial professionals. However, supply remains limited, creating a talent gap in the sector.
GIC Re withdraws marine hull war cover in high-risk zones
General Insurance Corporation of India (GIC Re) has announced the withdrawal of marine hull war risk cover in several high-risk global regions, effective early March 2026.
The decision comes amid escalating geopolitical tensions in West Asia and around the Strait of Hormuz, a critical trade route handling nearly 20 per cent of global oil movement. The withdrawal applies to vessels operating in regions such as the Persian Gulf, Gulf of Oman, Red Sea, Black Sea, and waters around sanctioned countries.
GIC Re has clarified that vessels entering these zones will be treated as breaching policy warranties, leaving shipowners without war risk protection. The move is expected to increase insurance costs and force operators to reassess risk coverage strategies.
GIC Re also pulls marine cargo war cover
Following its earlier move, General Insurance Corporation of India has withdrawn marine cargo war cover in high-risk zones from March 7, affecting facultative reinsurance contracts.
The decision impacts coverage for individual or large cargo risks, especially in volatile regions such as the Persian Gulf, Gulf of Aden, Red Sea and Black Sea. Heightened tensions near the Strait of Hormuz have already led to disruptions, with several carriers avoiding the route or diverting shipments.
The withdrawal may lead to congestion at alternative ports and higher logistics and insurance costs. Industry experts expect insurers to reassess underwriting strategies, with cargo cover becoming more expensive and selectively available.
Zuno General Insurance targets improvement in combined ratio
Zuno General Insurance is aiming to improve its combined ratio by 500–700 basis points over the next two years as part of its strategy to achieve profitability.
The insurer expects its expense of management (EoM) ratio to reach the regulatory threshold of 30 per cent in the coming financial year. Currently, motor insurance contributes about 50 per cent of its premium, while health insurance accounts for around 30–35 per cent.
The company reported stronger growth compared to the industry in recent periods, particularly in motor insurance, and remains optimistic about sustaining momentum despite pricing pressures in certain segments.
War risk cover withdrawal may push up premiums
The withdrawal of marine war risk cover by global reinsurers, including General Insurance Corporation of India, is expected to drive up insurance premiums and increase uncertainty for exporters.
With key routes such as the Strait of Hormuz, Red Sea and Persian Gulf classified as high-risk zones, insurers are revising pricing on a voyage-by-voyage basis. Additional premiums for vessels operating in these regions have already started rising.
While cargo war risk cover remains available, it is becoming more expensive and selective. The evolving situation highlights the growing impact of geopolitical risks on global trade, insurance pricing and supply chain stability.
War-risk premiums surge as Gulf tensions disrupt trade
Marine insurers are preparing for sharp increases in war-risk premiums and possible cancellation of coverage as tensions escalate in the Persian Gulf region. Several insurers have already issued notices of cancellation for ships transiting the Strait of Hormuz, citing risks such as potential closure of the strait, vessel seizures, and retaliatory strikes.
Shipping routes are being diverted, increasing transit time and logistics costs. Insurers clarified that voyages already underway will remain covered until cancellation takes effect, but post-cancellation, geographic restrictions or steep premium hikes may apply.
Experts warned that prolonged conflict could also impact reinsurance contracts and pricing cycles, particularly during renewal periods. The situation highlights how geopolitical risks are increasingly influencing global trade flows, insurance pricing, and supply chain stability.
India seeks clarity on US maritime reinsurance facility
India is awaiting operational clarity on a proposed maritime reinsurance facility by the US International Development Finance Corporation (DFC), aimed at stabilising trade in the Gulf region. The facility is expected to provide political risk insurance and guarantees, covering losses of up to $20 billion on a rolling basis.
Officials are seeking details on vessel eligibility, coverage scope, and insured limits before evaluating participation. The initiative comes amid rising crude oil prices and disruptions in key shipping routes due to regional conflict.
The facility is expected to initially cover hull, machinery, and cargo risks, offering support to allied businesses operating in high-risk zones. India is in active discussions with US authorities and expects further clarity soon, as it assesses the potential benefits of the proposed reinsurance support.
Govt explores domestic insurance support for shipping sector
The government is revisiting plans to establish a domestic Protection and Indemnity (P&I) insurance framework to support shipping companies amid rising war-risk premiums and disruptions in West Asia. Discussions are underway between the Ministry of Ports, Shipping and Waterways and the Department of Financial Services, supported by an ongoing feasibility study.
The initiative aims to reduce reliance on foreign insurers and strengthen India’s maritime insurance capacity. P&I clubs typically provide coverage for third-party liabilities such as cargo damage, pollution, collisions, and crew injury.
Currently, over 90 per cent of global ocean-going ships are insured through international P&I groups. A domestic framework could enhance resilience, reduce exposure to global market volatility, and help manage escalating insurance costs for Indian shipping companies and exporters.
India accelerates plan for indigenous maritime insurer
India is expediting efforts to establish its own maritime insurance entity as war-risk premiums surge due to the ongoing West Asia conflict. Officials indicated that discussions with the finance ministry have been revived, with a detailed feasibility study nearing completion.
The proposed entity would function as a domestic P&I provider, offering liability coverage to shipowners and reducing dependence on global insurance networks. Rising insurance costs have become a key concern for exporters and freight operators, with war-risk surcharges impacting trade economics.
Officials noted that insurance premiums typically rise sharply during geopolitical crises, and provisions such as “blocking and trapping” clauses could further complicate claims. The proposed initiative is expected to strengthen risk management, ensure continuity of coverage, and enhance India’s strategic autonomy in maritime insurance.
War triggers rethink on travel insurance coverage gaps
The ongoing West Asia conflict is prompting insurers and travellers to reassess the effectiveness of travel insurance in addressing geopolitical risks. Early signs are visible in claims patterns, with insurers reporting a rise in disruption-related claims such as flight cancellations, trip interruptions, and extended accommodation stays.
Insurers noted that while such claims are being processed actively, the direct financial impact remains limited due to reduced travel to affected regions. However, the situation has exposed a significant gap between customer expectations and policy coverage.
Industry experts emphasised that most standard travel and health insurance policies exclude losses arising directly from war or military conflict. As geopolitical risks become more frequent, travellers are being urged to carefully review policy terms. The episode highlights the need for more transparent product design and better risk communication in travel insurance.
Ind AS adoption to enhance transparency in insurance sector
The proposed transition to Ind AS 117 by insurers, as guided by the Insurance Regulatory and Development Authority of India (IRDAI), is expected to improve transparency and align India’s insurance sector with global accounting standards.
Currently, insurers follow a framework based on the Insurance Act, 1938 and IRDAI regulations, which differs from international norms in areas such as liability measurement and profit recognition. Globally, IFRS 17 has already established a uniform accounting approach for insurance contracts.
The shift to Ind AS will introduce market-based valuation and clearer financial reporting, enhancing comparability with global insurers and boosting investor confidence. Under the new framework, insurance liabilities and reinsurance assets will be presented separately, ensuring better visibility of risk mitigation.
Experts believe the transition will primarily impact accounting practices without materially affecting policyholders, while strengthening the overall credibility of the sector.
