Why in the News? 

• Valuettics Re has become the first private firm to receive the Insurance Regulatory and Development Authority of India (IRDAI)'s approval to start reinsurance operations in India. 

Key Highlights: 

• General Insurance Corporation (GIC Re), a public sector company, was previously the only reinsurance company operating in India. 

About Reinsurance: 

• Reinsurance is a risk management practice where insurance companies transfer a portion of their risk to another insurance company (the reinsurer) to protect themselves from large financial losses. 
• Regulator: Insurance Regulatory and Development Authority of India (IRDAI). 
• Laws: Governed under the Insurance Act, 1938 and IRDAI (Re-Insurance) Regulations, 2018.