IRDAI issues guidelines on filing of re-insurance arrangements

Feb 04, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on January 31, 2020, issues guidelines on filing of re-insurance arrangements. The insurers must submit it re-insurance programme 45 days before the commencement of the financial year as per the IRDAI (Re-insurance) Regulations, 2018. Also, in addition to such submissions, IRDAI has requested the insurers to confirm that reinsurance treaties meet the risk transfer requirements applicable for particular financial year.

The re-insurance arrangements which do not have pure risk transfer such as capital gearing treaty, alternate risk transfer solution, finance re-insurance, non-traditional structured re-insurance solution or any other term, should inform the same to IRDAI. The insurers must take prior approval from IRDAI in case it intends to adopt any alternative risk transfer solutions, non-traditional structured solutions, Financial Re-insurance.

IRDAI to be informed about any proposed re-insurance arrangement other than pure risk transfer or traditional re-insurance contracts on or before March 01, every year and insurers must obtain due confirmation from the lead reinsurers specifying the methodology used for such risk transfer and its compliance and submit it to the Authority.

These guidelines shall be applicable with immediate effect.

[IRDAI/RI/GDL/MISC/038 /01/2020]


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