Bajaj Finserv has filed an application with the Insurance Regulatory and Development Authority of India (IRDAI) for a reinsurance license within the next two months, according to sources reported by CNBC TV18. The company is targeting to start its reinsurance business by April 2027, coinciding with the renewal cycle for domestic reinsurance treaties. This strategic timing positions Bajaj Finserv to capitalize on the upcoming treaty renewals and establish its presence in the reinsurance market ahead of the renewal cycle.
Bajaj Finserv is set to appoint N Ramaswamy Narayanan, the former chairman and managing director of General Insurance Corporation of India (GIC Re), to lead its entry into the reinsurance sector. According to reports from The Economic Times, Narayanan, who retired from state-owned GIC Re in September 2025, is expected to join the Bajaj Group company next week. The appointment represents a significant strategic move as the company prepares to strengthen its existing insurance operations through a new subsidiary focused on reinsurance. CNBC TV18 sources confirm that Bajaj Finserv has likely appointed N Ramaswamy to lead its reinsurance business, leveraging his extensive industry experience.
In July, Bajaj Finserv's board had approved a proposal to pursue reinsurance through a wholly owned subsidiary, subject to approvals from the Insurance Regulatory and Development Authority of India (IRDAI) and other regulators. As reported by The Economic Times, the move will add a reinsurance arm to the Bajaj Group's existing insurance presence through Bajaj General Insurance and Bajaj Life Insurance, giving it exposure across the insurance value chain. The proposed entry would come ahead of the renewal of domestic reinsurance treaties starting April 2027, positioning Bajaj Finserv to capture market share during this critical period.
Narayanan brings more than three decades of reinsurance experience to the role. According to The Economic Times, he had joined GIC as a direct recruit officer and handled almost all major non-life classes, including fire, engineering, motor, liability, aviation, marine and agriculture, as well as business across international markets. He also spent close to five years as CEO of GIC Re's UK operations, involved in branch operations and setting up GIC's Lloyd's syndicate. Narayanan became GIC Re's CMD in October 2023 and retired from the position on September 30, 2025, with the government subsequently appointing Hitesh Joshi as GIC Re's CMD in June 2026.
India is looking to deepen its domestic reinsurance market and retain a larger share of premiums currently ceded to overseas companies. According to industry estimates reported by The Economic Times, the country sends about $5 billion offshore annually as reinsurance premium, including around $1.5 billion as retrocession. The domestic reinsurance market is dominated by GIC Re, while new capacity is emerging through GIFT City, with more than two dozen reinsurers starting operations through the International Financial Services Centre. According to IFSC data, insurance offices in GIFT City booked $419.16 million of reinsurance and insurance premiums in the June quarter of FY27 compared with $42.75 million a year ago, with reinsurance premium volumes rising sharply in recent years.
The increase in capacity has also put pressure on pricing, with reinsurance rates softening as domestic and global players seek to build books in India. As reported by The Economic Times, this pricing environment presents both challenges and opportunities for new entrants like Bajaj Finserv's reinsurance venture. The strategic timing of this appointment reflects the company's confidence in leveraging Narayanan's extensive experience to navigate the evolving domestic reinsurance landscape, particularly as the market prepares for the upcoming treaty renewals.
