Irdai forms panel for reinsurance framework review

NEW DELHI: Insurance regulator Irdai has set up a 17-member committee to conduct a comprehensive review of the existing reinsurance framework.

The Insurance Regulatory and Development Authority of India (Irdai) has notified various regulations, guidelines, and circulars over the years.

As per the regulator, the enactment of Insurance Laws (Amendment) Act, 2015, has brought about changes in the reinsurance market that facilitated entry of foreign reinsurance branches (FRBs) and Lloyd's India Branch, Lloyd's Syndicates and Service Companies.

"In view of these developments, it has been decided to carry out a comprehensive review of the existing framework for reinsurance activities, including reporting requirements for the various entities," Irdai said while setting up the Reinsurance Expert Committee.

Reinsurance is insurance that is purchased by an insurance company from other insurers.

Among other things, the committee headed by Irdai former member M Ramaprasad has been asked to make specific recommendations and devise formats for reports and returns required to be submitted to Irdai.

It has also been asked to review the current regulatory framework for reinsurance and make suitable recommendations, in addition to study international best practices.

The panel has been asked to finalise and submit its report by August-end.