GIC looks to foray into reinsurance business in Eurasia

New Delhi: General Insurance Corporation (GIC) is eyeing a foray into the reinsurance business in the Eurasia market as it held negotiations with Astana International Finance Centre (AIFC), Central Asia's emerging financial hub. The meet is said to have focussed on the prospects for cooperation between the AIFC and GIC in business risk reinsurance area. The two sides also discussed a proposal mooted by the Kazakhstan government to establish Astana-Re company at the AIFC. If the plan sees the light of day, it would be the first company in the history of Kazakhstan and Central Asia to reinsure business risks.

Agreement to be signed in May

The negotiations on cooperation with AIFC are set to continue at the 12th Astana Economic Forum, where GIC is participating. An agreement on the same is expected to be signed during the visit of its delegation to the Kazakh capital in May.

What is AIFC?

AIFC was launched by Kazakhstan in 2018 as a financial hub for the entire region. The initiative for setting up a financial centre was taken up by First President of Kazakhstan Nursultan Nazarbayev. The AIFC features a modern stock exchange – AIX – whose shareholders include NASDAQ, Shanghai Stock Exchange, Silk Road Fund and Goldman Sachs. The centre focuses on activities like capital market development, asset management, private wealth management, Islamic finance, new financial technologies.

The Embassy of Kazakhstan in India had held a round table on the capabilities of AIFC on in Observer Research Foundation (ORF) Mumbai chapter April 16. During the discussions, the participants discussed mutually beneficial ideas for cooperation.