SIRC 2026: Peak Re to expand fac, specialty lines in India amid rating pressure

November 4 2026 by

Peak Re will diversify its offering in India to provide more facultative and specialty lines cover, even as fresh capacity intensifies rate pressure across the market, according to Sudhir Salian, head of India and Middle East.  

Salian said the global insurance rates are softening, and similar effects will be visible in India, particularly because of the price sensitivity of Indian cedents.  

However, the Hong Kong reinsurer said it will maintain its underwriting discipline amid rising risk exposures. 

“At the same time, the entry of additional onshore reinsurers has expanded local capacity and intensified competitive pressure. The impact on pricing is already evident in the rate adjustments seen in the direct property insurance segment. Barring a significant market-changing loss, we expect this trend to continue,” he added. 

However, the combination of declining prices and growing exposures is prompting Peak Re to examine its portfolio more closely as the market approaches its next major renewal. 

“Rising aggregate exposures, continued rate erosion and several losses in India during the year have heightened our focus on portfolio dynamics and management. We will therefore monitor market developments closely and assess their implications for the April 1 renewal,” Salian said. 

Despite the competitive environment, Peak Re intends to maintain a selective underwriting approach, according to Salian. 

“We will maintain a selective and disciplined approach, focusing on cedents whose underwriting practices we understand and trust. Our objective is to build long-term relationships that allow us to support clients as they strengthen and expand their business.” Sudhir Salian, Peak Re

The company also plans to diversify its portfolio and expand its capabilities beyond traditional reinsurance business. 

“In terms of portfolio management, Peak Re will continue to diversify its offering, globally as well as in India, partly by building on its recent success in structured solutions,” he added.  

“Going forward we also expect to provide more facultative coverage and steadily grow our underwriting capabilities across specialty lines. 

“At the same time, the adoption of IFRS 17 and risk-based capital frameworks will drive demand for structured and capital-management solutions.” 

Indian insurers began transitioning to Indian Accounting Standards in April 2026, while the Insurance Regulatory and Development Authority of India (IRDAI) has been working towards implementing a risk-based capital framework from April 2027. 

Rising competition

India’s reinsurance market has been attracting additional domestic and international capacity, and more than 20 reinsurers have established operations in the Gujarat International Finance Tec-City Special Economic Zone (Gift City), India’s special economic zone. 

“Gift City has grown rapidly. By the end of the first quarter of 2026, it had attracted 36 insurance entities, including 22 reinsurers, and premiums had reached approximately US$650 million in FY26. More capacity gives cedents more choice,” Salian said.  

Operating in the Indian insurance market for more than a decade, Peak Re was among the first reinsurers to receive a licence at Gift City in early 2025, he added. 

Effective this year, India’s insurance regulator, the the Risk-Based Capital and Risk-Based Solvency frameworks. Over time, these developments may influence direct insurers’ demand for reinsurance protection. 

“Benefiting from our first-mover advantage in Gift City, we gained substantial traction since we received our branch licence and are now among the larger reinsurers operating in Gift City,” Salian said.  

“We underwrite a broad spectrum of risks across multiple classes of business, including property, engineering, motor, health, credit and surety, agriculture, structured solutions and life insurance.” 

According to Salian, the size and potential future growth of the market speaks volumes of imminent opportunities. India is currently the 10th largest insurance market with a premium volume of approximately US$151 billion, but its insurance penetration of 3.7% is still well below the global average of 7.3%.  

However, the prospects are improving, considering India’s dynamic GDP growth, forecast at 6% for 2026, together with its significant protection gap.  

Government initiatives such as “Insurance for All by 2047”, aims to broaden access to life, health and property insurance for consumers and businesses, according to Salian. 

The Indian government has also allowed 100% foreign direct investment in insurance, attracting additional capacity to the country. International players’ interest is mirrored by that of domestic insurers, which are also accelerating their expansion, he explained. 

“Thus, despite the softening of rates both globally and regionally, the Indian insurance market remains highly attractive,” Salian said. 

Indian insurers are looking beyond price and capacity for partners that are able to support their growth through expertise sharing, a broad product offering and a commitment to advance the overall market, he added. 

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