CB Murali will be chief executive officer (CEO) of AGCS India
Allianz Global Corporate & Specialty SE (ABCS) is looking to expand its presence in the Indian market through its new reinsurance branch. The firm said its new reinsurance branch allows them to further expand its presence across Asia Pacific and capitalise on growth opportunities in the Indian market.
It added that they can better serve global corporate clients with business interests in the country.
CB Murali will be the CEO of AGCS India. He was previously the head of Bajaj Allianz’s Global Risks division.
AGCS is the dedicated carrier for corporate and specialty insurance business of German insurance giant Allianz SE, one of the highest-rated global property and casualty insurers.
India's under-penetrated market presents opportunity
Insurance laws in India were amended in 2016, allowing foreign reinsurers to open branches here to serve clients. AGCS is no stranger to the country, having worked closely with Bajaj Allianz and its Global Risks division since 2013.
AGCS sees the India corporate insurance market as holding significant potential due to its size, low penetration rates and expected growth of the economy. India is the world’s 11th largest insurance market and 5th in Asia behind China, Japan, South Korea and Taiwan by premium volume.
However, industry estimates show that India only ranks 73rd in the world with a meagre non-life insurance penetration rate of 0.93 percent of GDP, suggesting opportunities for future growth as the market matures.
Sinéad Browne, AGCS Board Member and Chief Regions and Markets Officer for Asia Pacific, said, “India’s continued rapid growth and opening up of the domestic reinsurance market to foreign-owned insurers makes it the ripe time to have our own branch in the country. This will allow us to better help clients navigate the continually evolving risk landscape with local underwriting and risk management expertise."
India business plans
AGCS India Branch will initially offer facultative, proportional and non-proportional reinsurance solutions on the following lines of business: property, liability, marine, financial lines, construction and engineering and energy.
In particular, AGCS said it sees opportunities in large-scale construction projects under the USD 106 billion Bharatmala infrastructure development plan, as well as strong contributions from the automotive, electronics and hi-tech communication industries.
AGCS also expects particular demand for reinsurance capacity for cyber and initial public offering (IPO) insurance, offered under the financial lines of business. Increased awareness and a strong digitalisation push amongst businesses have led to more enquiries on cyber risk and cover in the country.
The India branch is the latest addition to AGCS Asia Pacific’s regional footprint, following on the heels of a new branch office in South Korea in 2017. AGCS is currently present in 11 countries and 16 cities in the region, a list that also includes Singapore, Hong Kong, Japan, China, Indonesia, Brunei, Myanmar, Australia and New Zealand.Business from the Asia Pacific contributed 6.3 percent to AGCS overall global premium volume of EUR 7.4 billion in 2017.