GIC To Set Up Branch In London

Mumbai: Domestic reinsurer The General Insurance Corporation has got clearance to start operations via its London branch. The corporation had for long been in the process of changing its London representative office into a branch. London is the capital of the global reinsurance industry as most companies go there to seek reinsurance support. The corporation has been eyeing overseas to expand its foreign portfolio, which currently contributes to 22 per cent of its overall business. This could go up to 50 per cent in the next 5-10 years. It currently does business in Asia, Eastern Europe, Africa and West Asia. GIC sent teams to around 16 countries and 190 insurance companies to look at potential business opportunities overseas. The corporation has now set its sights on China and could look at establishing representative offices there by 2008-09. Currently, non-life insurance companies have to compulsorily place 15 per cent of their reinsurance business with GIC Re, which is known as obligatory cessions.