The Insurance Regulatory and Development Authority of India (IRDAI), the insurance sector regulator of India has recently issued a Master Circular under the IRDAI (Registration and Operations of Foreign Reinsurers Branches and Lloyd’s India) Regulations, 2024, and the IRDAI (Re-insurance) Regulations, 2018. This Master Circular inter-alia mandates Cross Boarder Re-insurers (CBRs), accepting re-insurance business from India, to maintain collateral in India, marking a significant step towards enhancing the domestic reinsurance landscape.
This strategic move underscores India’s commitment to creating a robust regulatory framework that not only safeguards domestic interests but also attracts global reinsurance players to invest and operate in mainland India or in the international side of India i.e. GIFT IFSC, under the aegis of International Financial Services Centres Authority (IFSCA).
