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Reinsurance regulations to be out by February end: IRDAI chairman

The final reinsurance regulations, which will define how the business is done in the country as well as the order of preference, will be released by end of February, said Insurance Regulatory and Development Authority of India (IRDAI) Chairman TS Vijayan.

January 19, 2018 / 01:02 PM IST
 
 
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The final reinsurance regulations, which will define how the business is done in the country as well as the order of preference, will be released by end of February, said Insurance Regulatory and Development Authority of India (IRDAI) Chairman TS Vijayan.

Speaking to the press on the sidelines of the FICCI Annual Insurance Summit, Vijayan said the draft regulations have been released, and they will take a decision on it. “We are looking at the stakeholders’ responses. There could be some changes there,” he added.

Last week, in an exposure draft, IRDAI has said the order of preference for placing business with reinsurers will be led by Indian reinsurers who have been transacting business for not less than past three continuous years. Then to other Indian reinsurers will follow. This will be followed by foreign reinsurers' branches, and then by cross border reinsurers (CBRs).

General Insurance Corporation of India (GIC Re) is the only Indian reinsurer with more than three years business track-record in the country. Foreign reinsurers have expressed discontent with the draft norms which are meant to enable utilisation of domestic capacity and domestic reinsurers.