The Insurance Regulatory and Development Authority of India vide its notification dated 22nd January 2021 has issued guidelines on cross border reinsurers in order to streamline the regulatory process.
Key Highlights from the guidelines:
- The insurer shall not transact reinsurance business with any CBR without valid FRN;
- The Authority will allot country-wise separate FRN to the CBR and the FRN allotted shall be valid for one financial year for which application is filed by the insurer.
- Once FRN is allotted for any particular CBR the same may be used by other insurer for placement of re-insurance business with such CBR.
- The insurer, within thirty (30) days of the commencement of the financial year, shall submit a certificate of compliance to the Authority confirming that, the re-insurance placements made to CBRs who comply with the eligibility criteria or with those CBRs prescribed in these guidelines.
- All the re-insurance business placements made with the Cross border reinsurers who do not comply with Eligibility Criteria shall be placed before the Board of Directors of the insurer for their approval / ratification, and certified copy of such resolution shall be filed with the Authority.
