IRDAI gives approval to 23 cross-border reinsurers

by | posted in: Corporate Updates, Cross Border Transactions, M&As, Joint Ventures, Economy, Business Updates, Corporate Affairs | 0

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

This will allow Indian insurers to make reinsurance placements with a large number of reinsurers. Cross-border reinsurers are those who do not have a physical presence in India but carry on reinsurance business with Indian insurance companies.

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 (Labuan) and Union Insurance Company (UAE), among others.

Reinsurance assumes significance as it is important to maintain solvency of the insurer and to ensure that the claims/other clauses are honoured as and when they arise.

Past approvals

In the year 2015-16, the regulator had recognised 244 reinsurers and 90 Lloyds 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.

Source: http://www.thehindubusinessline.com/money-and-banking/irdai-gives-approval-to-23-crossborder-reinsurers/article8581417.ece

IRDAI okays 16 FDI proposals worth Rs 14,592 crore

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, India & International - Corporate updates | 0

Insurance regulator IRDAI has approved as many as 16 proposals amounting to Rs 14,591.9 crore as foreign investment, Parliament was informed today.

“Post notification of the Insurance Laws (Amendment) Act, 2015, Irdai has approved 16 proposals amounting to Rs 14,591.89 crore as foreign investment in the insurance sector,” Minister of State for Finance Jayant Sinha said in a written reply in the Rajya Sabha.

The Insurance Laws (Amendment) Act, 2015, provides for an increase of foreign investment cap in an Indian insurance company to 49 per cent from 26 per cent with the safeguard of Indian ownership and control, he said.

The government had notified the Indian Insurance Companies (Foreign Investment) Rules, 2015, to facilitate foreign investment in the insurance sector.

“Indian Insurance Companies (Foreign Investment) Rules, 2015, have been amended on March 16, 2016, to allow foreign investment up to 49 per cent through automatic  route in the insurance sector,” Sinha said.

To bring clarity on ‘Indian owned and controlled’, the Insurance Regulatory and Development Authority of India (Irdai) has issued guidelines on the same.

In December, Irdai chief T S Vijayan had said higher foreign participation in the insurance sector will attract more capital and increase sectoral penetration in India.

Source : http://economictimes.indiatimes.com/articleshow/52094191.cms