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Submission of advance reinsurance programme
To ensure compliance with the provisions of IRDAI (Re-Insurance) Regulations, 2018, IRDAI reiterated that every insurer is required to submit the advance reinsurance programme at least 45 (forty-five) days before the commencement of a financial year. A certificate confirming the information in the programme must be duly signed by the CEO and CFO of the insurer.1
Subsequently, a master circular providing guidance on various provisions of IRDAI (Registration and Operations of Foreign Reinsurers Branches and Lloyd's India) Regulations, 2024 and IRDAI (Reinsurance) Regulations, 20182 was released. It applies to all insurers, reinsurers, foreign reinsurer branches and Lloyd's India. It details provisions relating to registration of foreign reinsurer branches, Lloyd's India, service companies and syndicates of Lloyd's India and their operations. It also prescribes conditions for placement of reinsurance business with Cross Border Reinsurers ("CBRs"). CBRs accepting reinsurance business from India cedants are required to maintain collateral in India. The collateral can be either in the form of irrevocable Letter of Credit from the CBR or premium / funds withheld by the ceding insurer. These provisions apply to all reinsurance placements with CBRs by cedants from India, for reinsurance programs from the financial year 2025-2026 onwards.
Footnotes
1 Circular dated January 5, 2024. F. No. IRDAI/REIN/CIR/RISF/4/1/2024.
2. Circular dated May 31, 2024. F. No. IRDAI/REIN/MSTCIR/MISC/87/5/2024.
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