India's GIC Re plans to reduce share of overseas property risk as climate losses rise

MUMBAI: Indian reinsurer GIC Re plans to increase its focus on casualty and specialty lines while reducing its reliance on property and catastrophe business overseas amid rising climate-related losses, Chairman Hitesh Joshi said.

Climate change is reshaping global risk patterns, Joshi said, pointing to floods in traditionally low-risk regions such as South Africa and Dubai, as well as increasingly severe hurricanes, typhoons and cyclones.

The shift comes as reinsurers worldwide grapple with rising losses from climate-linked disasters, prompting many to reassess their exposure to property and catastrophe risks.

Economic losses from natural disasters reached $368 billion in 2024, 14% above the inflation-adjusted annual average since 2000, according to a report by insurance broker Aon.

“To the extent feasible, depending on our internal analysis, we should rebalance our exposure to natural catastrophes,” Joshi said on Tuesday, speaking at the company headquarters in Mumbai.

The reinsurer is seeking to rebalance its overseas portfolio in favor of an increased share of casualty and specialty lines of insurance, he added.

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Specialty insurance typically includes shipping, aviation and cybersecurity covers.

GIC Re operates in 137 countries and processed premiums worth 443 billion rupees in 2025-26 with about 25% of its business coming from the international markets.

It is aiming to increase its share of foreign business in the overall risk portfolio to around 40% in the next three to five years, with plans to further expand in markets including Japan, Taiwan, South Korea and parts of Europe, Joshi said.