Reinsurance Intermediary Accuses Indian Reinsurer of Breaching Binding Authority Agreements

NEW YORK — A reinsurance intermediary has sued an Indian reinsurer in New York federal court, accusing it of breaching the parties’ binding authority agreements by refusing to pay commissions on $600 million in premium generated for reinsurance agreements the intermediary underwrote on behalf of the reinsurer.

In a Feb. 4 complaint filed in the U.S. District Court for the Southern District of New York, AM RE Syndicate Inc. further alleges General Insurance Corporation of India of purporting to terminate the binding authority agreements, causing it to be owed $35 million in premium from fronting insurers with whom the reinsurance …