The Insurance Regulatory and Development Authority of India (IRDAI) has announced plans to form a panel of 17 members to conduct a comprehensive reinsurance framework review.
The panel will examine the current regulatory framework for reinsurance and study international best practices, as well as look at the framework for health insurance – one of the fastest growing market segments in recent years – before making recommendations.
The IRDAI, said; “A need has been felt to visit/re-visit various areas in the framework applicable for health insurance to ensure level playing field for the industry as well as rationalise various provisions.”
Within the health insurance sector, the panel will look at product distribution, reinsurance, place of health in the rural and social sector, mergers and acquisitions, solvency, actuarial matters, regulation, and investment and financial matters.
The IRDAI introduced the Insurance Laws Amendment Act in 2015, allowing foreign firms to enter the India market and set up reinsurance branches, and Lloyd’s India Branch, Lloyd’s Syndicates and Service Companies, and the Indian regulator said; “In view of these developments, it has been decided to carry out a comprehensive review of the existing framework for reinsurance activities, including reporting requirements for the various entities.”
The committee will be led by IRDAI former member M Ramaprasad – and has an end of August deadline for submitting a report complete with recommendations for the Indian regulator.