IRDAI on 22nd August, 2023 has issued the Insurance Regulatory and Development Authority of India (Re-insurance) (Amendment) Regulations, 2023. The objective of these amendments is to harmonize the provisions of various regulations applicable to Indian Insurers and Indian Re-insurers including Foreign Re-insurance Branches (FRBs) and IFSC Insurance Offices (IIOs), encourage more reinsurers to set up business in India and to enhance ease of doing business.
Every Indian Re-insurer including Foreign Re-insurance Branches (FRBs) shall maintain a minimum\retention within India of 50% of Indian re-insurance business underwritten. Any retrocession to an IIO up to 20% of Indian re-insurance business underwritten shall be reckoned towards the required minimum retention of 50%.
Every Indian Reinsurer and FRB writing re-insurance business, shall file the Board approved underwriting policy to IRDAI. Any subsequent change, in the underwriting policy, shall be duly approved by the Board and filed with the Authority within 15 days of Board’s approval.
Every Indian insurer shall submit soft copies of list of Re-insurers with their credit rating to IRDAI, their shares in the proportional and non-proportional Re-insurance arrangements along with final Re-insurance programme.