The Insurance Regulatory and Development Authority of India on 20th October 2022, notified the Insurance Regulatory and Development Authority of India (Re-insurance) (Draft Amendment) Regulations, 2022. The views/comments of the various stakeholders and the general public are invited on the exposure draft. The comments/suggestions, if any, may be sent on or before 11th November 2022 to saba.talukdar@irdai.gov.in and rohit.rajdev@irdai.gov.in.
The following are major changes being contemplated:
- To reduce compliance requirements on submission of Advance Reinsurance programme;
- To revise order of preference while placing the Reinsurance business;
- To increase the cession limits of the cedants while placing business with Cross Border Reinsurers;
- To reduce the assigned capital limits requirements in respect of new Foreign Reinsurance Branches(FRBs)
- The retrocession to IIOs to be counted towards the retention requirements of FRBs.
As per the Draft amendment under sub-regulation 3(2)(c) Every Indian Re-insurer shall maintain a minimum retention of 50%of its Indian business. The retrocession to IIO upto 20% of Indian Reinsurance business is reckoned while computing with the minimum retention of 50% of the Indian Reinsurance business.
