The Insurance Regulatory and Development Authority of India (IRDAI) has granted special approval to 11 cross-border reinsurance companies for the 2019-2020 year.
This compares to 16 cross-border reinsurers that were approved by the regulator to operate in India for the 2018 year.
According to a circular published by the IRDAI, the recently approved companies include: Republican Unitary Enterprise – Belarusian National Reinsurance Organisation; Nepal Re; East Africa Re; CICA Re; Ingosstrakh Joint Stock Insurance Co.; PICC Re; Zep Re; Joint Stock Company Russian National Reinsurance Com an RNRC; Bao Viet Insurance Company; and Indonesia Re.
In its circular, the IRDAI reminds all CEOs/CMDs of all re/insurance firms and foreign reinsurance branches (FRBs), that reinsurance placements by re/insurers/FRBs to the recently approved cross-border reinsurers, shall not exceed 5% of the total reinsurance premium ceded outside of India.
In recent years, a more relaxed regulatory landscape has resulted in numerous global insurers and reinsurers entering the India marketplace in a meaningful way, via partnerships with local players or the establishment of branches.
Each year, the IRDAI announces a list of cross-border reinsurers that are allowed to operate in the country for that duration.
