India - IRDAI's new reinsurance norms favor GIC
Saturday, 12 05 2015, Category: Insurance and Reinsurance, Country: India
In a move that might cause some global reinsurance companies to rework their plans for opening branches in India, the insurance regulator has done an about-turn on its regulations. In the IRDAI's meeting held on November 24, the government nominee Alok Tandon, joint secretary in the finance ministry, vetoed the Insurance Regulatory and Development Authority of India's (IRDAI's) proposal to keep Indian reinsurer GIC Re on a par with other reinsurers and said that GIC Re needs to be given preference in reinsurance deals. Following this, IRDAI has put out a new draft norms for foreign reinsurers.
This is the third time that the regulations on reinsurance have undergone a change. In the first draft in April this year, the IRDAI had proposed a similar regime giving preference to GIC. However, after foreign reinsurers expressed reservations, a second draft was issued in May whereby insurance companies, while entering into reinsurance deals, would deal with the Indian reinsurer (GIC) or other registered reinsurers or Indian insurance companies.
Source: The Times of India