In an interview with Reinsurance News, Prateek Singhal, Executive President & Head of Reinsurance, Howden India, explained that India’s “massive infrastructure push and the maturation of specialty risk markets” are primary drivers of reinsurance growth in the country.
“This expansion generates enormous demand for sophisticated proportional and non-proportional treaty placements covering Engineering (Erection All Risks/Contractors All Risks), large Power and Energy projects, and associated specialized liability risks.
“This requires high capacity and advanced expertise in risk modelling (e.g., Nat Cat exposure for coastal projects and complex contract wording). The fundamental P&C market provides a resilient base, forecasted to maintain a strong 10% CAGR, supplying an ever-growing pool of traditional treaty risk,” said Singhal.
For global brokers like Howden, Singhal stated that growth in specialised sectors offers the highest margins, with cyber insurance described as a “guaranteed hard market segment.”
“Driven by growing losses, cyber insurance premiums rose by 50% in 2023. Critically, the entry into force of India’s Data Protection and Privacy (DPDP) Act makes compliance a mandatory requirement, transforming cyber insurance into a regulatory/compliance prerequisite for major corporations,” explained Singhal.
“The value proposition of a global broker in these complex areas shifts from mere capacity placement to high-level technical advisory, assisting local primary insurers in structuring reinsurance that efficiently allocate large, complex, and volatile risks to specialized global capacity (FRBs or CBRs),” he added.
However, as well as opportunities for growth in the Indian re/insurance sector, Singhal highlighted information gaps and top-line focus over profitability as two main challenges from a reinsurance perspective, especially when underwriting large and complex proposals.
“Complex proposals often lack sufficient underwriting data, making it difficult for reinsurers to assess risk accurately and price appropriately,” said Singhal. “Domestic underwriters often prioritise premium volume (top line) rather than underwriting margins, which can lead to inadequate pricing and risk selection whereas CBRs focus solely on underwriting profit, creating a disconnect in risk appetite and pricing expectations.”
“These factors contribute to misaligned expectations between cedents and reinsurers, increasing the challenge of maintaining sustainable and profitable reinsurance partnerships in India,” continued Singhal.
In terms of the current state of India’s reinsurance market, Singhal told Reinsurance News that the sector is experiencing a “profound structural revolution, characterized by rapid GDP growth, economic activity, tariff and change in regulation that is moving the industry toward a competitive, multi-polar environment.”
He explained that foreign reinsurers, specifically those operating through Foreign Reinsurance Branches (FRBs), are projected to surpass 50% of the market in terms of gross written premiums by 2026.
“With Collateral in place this April, a lot of Cross-Border Reinsurers (CBRs) have walked out however they are reconsidering now that the dust has settled down.
“International markets are increasingly concentrating on annual products (due to collaterals) and new products such as Surety, contract frustration etc where there is lesser appetite of Indian domestic market.
“With regards to rates, the market is getting increasingly soft locally and this phenomenon is global where reinsurer capacity has become cheaper,” said Singhal.
We also asked Singhal for his outlook on the 2026 Indian reinsurance renewal, and he confirmed an expectation for a dynamic yet balanced market, defined by high capacity and differentiated pricing based on risk complexity.
“There will be structural adjustments from 2025, but no dramatic, unforeseen shifts are expected.
“With foreign reinsurers projected to command over 50% of the market, the influx of capital ensures capacity supply is robust and expanding. This high capacity acts as a moderating force on pricing. Consequently, non-catastrophe lines (Motor, Fire, General Liability) are expected to see decent pricing pressure.
“However, pricing discipline will persist in catastrophe-exposed treaties, reflecting the moderate pricing pressure due to rising global frequency and severity of climate events. Given the institutional challenge of accurate risk modelling, global reinsurers will continue to demand appropriate technical pricing for model uncertainty in property and engineering books,” said Singhal.
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