India, March 14 -- The Insurance Regulatory and Development Authority of India (IRDAI) has granted regulatory approval to Go Digit founder and chairman Kamlesh Goyal-backed Valueattics Reinsurance Ltd. to operate as a reinsurer.

For the uninitiated, a reinsurer offers insurance to other insurance companies. Effectively, a reinsurer helps insurance firms manage and transfer risk, particularly large losses.

With this, Valueattics Reinsurance will become the first private sector reinsurer to receive certificate of registration (CoR) from the regulator. As of now, state-owned General Insurance Corporation of India (GIC Re) is the only domestic reinsurer in the country.

The approval came during the regulator's 129th board meeting yesterday,...