India: 23 reinsurers approved

The Insurance Regulatory and Development Authority of India (IRDAI) has granted special approval to 23 Cross Border Reinsurers (CBR) for the year 2016-17.

According to PJ Joseph, Member (Non-Life), IRDAI, approvals were given on the basis of submissions made by CBRs and the recommendations made by the insurers and GIC Re in line with the guidelines issued by the authority last month. The approved CBRs include Ingosstrakh Joint Stock Insurance Company (Russia), Asian Reinsurance Corporation (Thailand), Trust Re (Bahrain), United Overseas Insurance Company (Singapore), Equator Reinsurances Ltd (Bermuda), East Africa Reinsurance Company Ltd (Nairobi), Vietnam National Reinsurance Corporation (Vietnam), CICA Re (Kenya), Arab Insurance Group (Malaysia) and Union Insurance Company (UAE), among others.

In the year 2015-16, the regulator had recognised 244 reinsurers and 90 Lloyd’s Syndicates. In 2014-15, 238 reinsurers and 87 Lloyds Syndicates were recognised. It is likely that the authority may give more approvals in future.

The onus of placing reinsurance business with registered CBRs is on the Indian insurers or reinsurers and they will have to ensure that the cross-border reinsurer meets the requirements as specified by the regulator. Within the country, the General Insurance Corporation of India is designated as the ‘Indian Reinsurer’ which entitles it to receive obligatory cessions of 5 per cent from all the direct non-life insurers.