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    Reinsurance

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    divya meenakshi

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    © All Rights Reserved
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    Reinsurance

    Uploaded by

    divya meenakshi
    15 views1 page

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    15 views1 page

    Reinsurance

    Uploaded by

    divya meenakshi

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    The IRDAI Re-insurance Regulations, 2018 focuses on 'insurers', as defined under

    Section 2(9) of the Insurance Act 1938, International Financial Services Centre (IFSC)
    insurance offices and 'exempted insurers', as defined under Section 118(c) of the act. The
    Regulations places certain guidelines on the retention mechanism that is subject to
    "proper and adequate diversification of risks”. One major change is the regulation is that
    the Reinsurance programmes now must include insurance segment information like
    reasons for variation in retention limits, segment statements and details od inter-company
    reinsurance. The procedures for reinsurance placements now place greater responsibilities
    and compliance mechanisms on the cedant, especially with respect to order of preference,
    obtaining best terms for insurance coverage, and cross-border; foreign reinsurance
    branch. The definition of 'cross-border reinsurer' has also been modified in the 2018
    notification. It includes parent or group companies of foreign reinsurance branches and
    IFSC insurance offices, thus excluding foreign insurers from the ambit of the definition.
    Secondly, the 2018 regulations require life insurance companies to use only their Indian
    domestic capacity before offering reinsurance schemes in case of cross-border reinsurers.
    This includes prior approval of the IRDAI, except for contracts of arm’s length basis.

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