Russia’s state-owned reinsurer supports three insurers with Indian transport approval | Insurance business America
“Due process was followed,” sources say
reinsurance
By Kenneth Araullo
Russia’s state-owned reinsurer has facilitated financial support to three Russian insurance companies to gain Indian regulatory approval to provide transportation insurance for tankers, sources said in a Reuters report.
This development comes at a time when Moscow is seeking to strengthen trade with India amid Western sanctions over its actions in Ukraine.
Sanctions imposed by the United States and its allies have significantly restricted Russia’s access to the global service network, including insurers and brokers. As a result, Russian companies Sogaz Insurance, Alfastrakhovanie and VSK Insurance, along with Ingosstrakh, have now received approval from India to offer marine insurance, according to an announcement on the Indian Shipping Regulatory Authority website.
India’s approval of the three insurers came after the Russian government-backed Russian National Reinsurance Company (RNRC) provided financial guarantees. According to Reuters, this is the first time that RNRC has advocated for these Russian insurers to be recognized in India.
Significantly, the RNRC faced sanctions from the United Kingdom and the European Union in 2023, which could complicate its international engagements.
India’s Directorate General of Shipping did not respond to queries on the matter.
In contrast, an Ingosstrakh spokesman released a statement regarding the alleged support.
“Ingosstrakh is not expanding its marine insurance activities to India. “Our relationship with India in the marine insurance industry has spanned 57 years, dating back to 1967 when we opened our Mumbai office,” the spokesperson said.
The newly licensed Russian insurers, which specialize in protection and casualty insurance (P&I), are not part of the Europe-based International Group (IG) of P&I clubs, which covers about 90% of global maritime tonnage.
“India’s shipping regulator has followed due process to add these new companies to the list of non-IG companies that can offer insurance,” a source told Reuters.
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2024-04-26 14:30:30
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