The Insurance Regulatory and Development Authority of India (IRDAI) has granted the R2 license to Valueattics Reinsurance Ltd, bringing it a step closer to commencing operations.
Valueattics will be the first private-sector reinsurer after GIC Re, which is a public-sector company.
This makes the company the first reinsurer to be granted registration to exclusively carry out reinsurance business in the revamped regulatory landscape. It marks a significant step in fostering competition in the reinsurance sector, IRDAI stated in a circular.
The decision is a major step toward fostering competition and diversification within the reinsurance landscape, a domain long dominated by the public sector, IRDAI's circular said.
With the R2 approval, the company is a step closer to commencing its reinsurance operations. However, it will be able to start its business only after fulfilling the requirement of bringing in the necessary initial capital.
In the insurance sector, an R2 license represents the second stage of regulatory approval needed to establish an insurance or reinsurance company in India. It is issued by the IRDAI once a company has successfully passed the initial scrutiny process.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
