Insurers may set up payments platform for reinsurance biz

In a bid to facilitate reinsurance premiums, commissions, claims and any other transactions between the insurer, insurance intermediary and reinsurance companies, the insurers are looking at setting up a digital payment platform for effective management of their reinsurance business.

This is an initiative by the General insurance council, which is expecting to see participation from foreign reinsurers and broker associations.

Authorities privy to the matter told ET Bureau that no insurance firm will hold more than a 6% stake. Although the developer company may be offered around 24% stake in the new entity which will be established.