“The overarching objective of these amendments is to harmonise and streamline the existing regulations that apply to Indian insurers, Indian reinsurers, Foreign Reinsurance Branches (FRBs), and International Financial Services Centre Insurance Offices (IIOs),” said Irdai in a notification.
IRDAI has simplified the format of the reinsurance program and brought in tandem the regulations for Indian insurers, Indian reinsurers, Foreign Reinsurance Branches (FRBs), and International Financial Services Centre Insurance Offices (IIOs) to position India as a global reinsurance hub.
Also, to increase retention within the Indian market retention within the domestic market, Irdai has asked insurers to prioritise ‘Category 1’ and ‘Category 2’ reinsurers for maximum participation, while also ensuring the best terms from lead reinsurers (excluding obligatory cession). GIC Re, being the sole Indian reinsurer is Category 1 while other categories includes other foreign reinsurance companies and indian insurers.
“As the amendments take effect and the reinsurance market in India evolves, the insurance sector is poised to witness accelerated growth, increased international recognition, and a more robust ecosystem overall,” IRDAI said.