Insurance Media, GLOBAL – To promote India as a leading global reinsurance hub, the Insurance Regulatory and Development Authority of India (IRDAI) recently revised India’s reinsurance regulations.

IRDAI stated in its press release that the objective of these amendments is to harmonize and simplify the existing regulations for Indian Insurance Companies, Indian Reinsurance Companies, Foreign Reinsurance Branches (FRBs) and Insurance Offices of the International Financial Services Center (International Financial Services Center Insurance Offices).

As the Clydec site reports, there is currently only one Indian general insurance company in India and twelve branches of foreign insurance companies, including Lloyd’s. There are six IIOs whose registrations have been issued to conduct insurance/reinsurance business International Financial Services Center.

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Regarding cross-border reinsurance (CBR) companies, which are not required to open offices in India, IRDAI said that 290 CBRs were involved in Indian reinsurance business in the financial year 2021-2022.

To meet increasing demand and increase the capacity of the reinsurance sector, new regulations have been introduced to attract global players from around the world. Regulatory requirements and compliance have also been simplified to ensure the effectiveness and ease of doing business in India.

Before the new regulations, all reinsurance brokerage was required cedent Search for requirements in order of preference across six levels. Leading the way are Indian reinsurance companies that have done reinsurance business in the last three financial years.

Other Indian reinsurance companies and FRBs came second. In third place are IIOs that have a credit rating of A- or higher from the rating agency Standard & Poor’s or an equivalent rating agency and offer the best and leading conditions with a minimum capacity of 10%.

In fourth place is CBR, which has a credit rating of A- or higher from the rating agency Standard & Poor’s or an equivalent rating agency and offers the best and leading conditions with a minimum capacity of 10%. The remaining IIO and CBR are located in the lower two levels.

IRDAI has now changed the order of preference to simplify the process and encourage investment of premiums collected in India.

Editor: S. Edi Santosa