India’s GIC Re plans to reduce its exposure to overseas property and catastrophe risks while expanding casualty and specialty insurance business. The move reflects a broader reassessment of catastrophe exposure across the global reinsurance sector as climate-related losses continue to rise, Reuters reported.
Speaking in Mumbai, chairman Hitesh Joshi said the state-owned reinsurer intends to increase casualty and specialty lines within its international portfolio. The company also plans to reduce its reliance on overseas property and catastrophe business.
“To the extent feasible, depending on our internal analysis, we should rebalance our exposure to natural catastrophes,” Joshi said.
The shift comes as reinsurers review underwriting strategies following several years of elevated catastrophe losses. According to Aon, economic losses from natural disasters reached US$368 billion in 2024. That was 14% above the inflation-adjusted annual average since 2000.
Joshi pointed to flooding in traditionally lower-risk areas, including parts of South Africa and Dubai. He also cited increasingly severe hurricanes, typhoons and cyclones as evidence of changing risk patterns.
Recent research from Swiss Re Institute highlights the growing impact of secondary perils on reinsurance portfolios.
The reinsurer said floods, wildfires and severe storms accounted for 92% of insured catastrophe losses in 2025. The findings suggest that weather-related risks are affecting a wider range of regions and business portfolios.
GIC Re operates in 137 countries and processed premiums of ₹443 billion during the 2025-26 financial year. About 25% of its business currently comes from international markets.
Despite reducing overseas property exposure, the reinsurer plans to expand internationally. Joshi said GIC Re aims to increase the share of foreign business in its overall portfolio to about 40% within three to five years. The company is targeting growth in Japan, Taiwan, South Korea, and parts of Europe.
The planned shift towards casualty and specialty business comes as specialty reinsurance continues to attract capital. Guy Carpenter said specialty markets remain supported by retained earnings, new entrants, and alternative capital sources.
Specialty insurance commonly includes marine, aviation, and cyber risks. Casualty business typically covers liability exposures that are less dependent on weather-driven loss activity.
The portfolio adjustment comes as the wider reinsurance sector remains well capitalised. Artex Risk reported that dedicated reinsurance capital reached US$805 billion entering 2026. The capital position gives reinsurers flexibility to adjust portfolio composition while maintaining capacity in selected segments.
GIC Re’s move highlights how climate-related losses are influencing underwriting appetite, capital allocation and international growth strategies.
