The Insurance Regulatory Development Authority of India, (IRDAI) has issued Guidelines on the issuance of File Reference Numbers (FRN) to Cross Border Reinsurers. The Guidelines aim at promoting ease of doing business and facilitating further development of the insurance industry. These Guidelines were issued on 3rd January, 2023 and shall be effective from that date.
The Guidelines prescribe for the following:
• Cross Border Re-insurers (CBRs) play a significant role in the reinsurance market by providing reinsurance support/capacity.
• Process of Allotment of File Reference Number (FRN) to CBRs.
• Insurer shall not place a re-insurance business with any CBR without a valid FRN.
• Authority may allot country-wise separate FRN to the CBR.
• Facility for Auto-renewal would be available for FY 2023-24 and thereafter. Once FRN is allotted for a particular CBR, the same shall be used by another insurer for placement of reinsurance business with such CBRs.
• Insurer, while placing reinsurance business with CBR, shall be solely responsible to ensure that the CBR meets the eligibility conditions as per the applicable regulations.
• Insurer shall place all the re-insurance business placements made with the ‘Non-Eligible’ CBRs before its Board of Directors for their approval/ratification. A certified copy of this resolution must be filed with the Authority within fifteen days of the resolution being made.
• Insurer must submit a certificate of compliance to the Authority confirming that all the re-insurance placements are made with the CBRs. This certificate must be submitted within thirty days of the commencement of the financial year.