Jio & Allianz Deal to Launch Reinsurance JV in India

Jio Financial Services Ltd. (JFSL) and Allianz Group plan to establish a binding joint venture to construct a 50:50 reinsurance partnership in India. The formation of the new entity will be subject to regulatory approvals and is designed to bring exciting solutions to insurers locally, hence, building local insurance capability.

Allianz will offer its global expertise through Allianz Europe B.V. and its reinsurance subsidiaries as part of its joint venture. This will enable access to the strengths and global expertise of Allianz Re and Allianz Commercial, particularly in areas such as pricing, portfolio management, & underwriting selection. As a result, locally based insurers will be more efficient at managing risk in an attractive, growing, and competitive business market.

Also read: QpiAI Raises $32M to Boost AI and Quantum Innovation

JFSL believes that the partnership will help build resilience in the insurance ecosystem in India by providing adequate underwriting capability and capacity. Allianz has been a reinsurer of risk in India for over 25 years, and this agreement signifies a renewed focus for Allianz in India, following its exit from Bajaj Finserv.

JFSL and Allianz also established a non-binding agreement to equally own general insurance and life insurance joint ventures. Isha Ambani, director of JFSL, has gone on record to say that India is seeing more financial involvement through technology and digital engagement with this new transformative area being a great opportunity for diversification, which has a great deal of strategic value.