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5400 GI/202 3 (1) रजिस्ट्री सं. डी.एल.- 33004/99 REGD. No . D. L. -33004/99
EXTRAORDINARY
PART III—Section 4
PUBLISHED BY AUTHORITY
No. 589] NEW DELHI , WEDNES DAY , AUGUST 23, 2023/ BHADRA 1, 1945
CG-DL-E-23082023-248261
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
NOTIFICATION
HYDERABAD, the 22nd August, 2023
Insurance Regulatory and Development Authority of India (Re -insurance) (Amendment) Regulations, 2023
F. No. IRDAI/ Reg/5/193/2023 .—In exercise of the p owers conferred by Section 114A of the Insurance Act,
1938, read with Sections 14 and 26 of the Insurance Regulator y and Development Authority Act, 1999, the Authority,
in consultation with the Insurance Advisory Committee, hereby makes amendment to the fo llowi ng Regulations.
a. Insurance Regulatory and Development Authority of India (Re -insurance) Regulations, 2018.
b. Insurance Regulatory and Development Authority of India (Registration and Operations of Branch Offices
of Foreign Re -insurers other than Ll oyd’s ) Regulations, 2015.
c. Insurance Regulatory and Development Authority of India (Lloyd’s India) Regulations, 2 016.
1. Short Title and commencement:
i. These Regulations may be called the Insurance Regulatory and Development Authority of India (Re -insurance)
(Amendment) Regulations, 2023.
ii. These Regulations shall come into force from the date of their publication in the official gazette.
2. Objective: The objective of these amendments is to harmonize the provisions of various regulations applicable to
Indian Insurers and Indian Re -insurers including Foreign Re -insurance Branches (FRBs) and IFSC Insurance
Offices (IIOs), encourage more reinsurers to set up business in India and to enhance ease of doing business.
CHAPTER - I
AMENDMENT TO THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF
INDIA (RE -INSURANCE) REGULATIONS, 2018
3. In Regulation 1, sub -regulation (3), shall be substituted namely: -
These Re gulations shall be applicable to Insurers as defined under Section2 (9) of the Act, and exempted insurers
as envisaged under Section118(c) of the Act.
4. In Regulation 1, after sub -regulation (3), following sub regulation shall be inserted, namely:
“(4) These Regulations shall be reviewed once every three years from the date of notification of the Insurance
Regulatory and Development Authority of India (Re -insurance) (Amendment) Regulations, 2023 unless a review,
repeal or amendment is warranted earlier.”
5. In R egulation 2, in sub clause (A) of clause (4), the words ‘‘other than IIOs” shall be substituted with words
“other than FRBs”.
6. In Regulation 2, in sub clause (B) of clause (4), the words “ and International Financial Service Centre
Insurance Offices (IIOs)” shall be omitted.
7. In Regulation 2, clause (14) shall be substituted, namely: -
“14. ‘Indian Insurer’, for the purpose of th ese regulations, means an ‘insurer’ as defined under section
2(9) of the Act, which has been granted certificate of registration by th e Authority, and shall also include
Exempted Insurers.”
8. In Regulation 2, clause (17) shall be substituted, namely: -
“17. International Financial Services Centres Authority, also referred to by the acronym IFSCA, means the
International Financial Services Centres Authority established under sub -section (1) of Section 4 of the
International Financial Services Centres Authority Act, 2019.
9. In Regulation 2, after clause (17), the following clause shall be inserted, namely: -
“17A. ‘International Financial Services Centre (IFSC) Insurance Office’, hereinafter called by acronym
‘IIO’, shall have the same meaning as assigned to it under IFSCA (Registration of Insurance Business)
Regulations, 2021.”
10. In Regulation 2, clause (21) s hall be substituted, namely: -
“21. ‘Retrocession' means a re -insurance transaction whereby a part of assumed reinsured risk is further
ceded to another Indian Insurer or an IIO or a CBR.”
11. In Regulation 2, after clause (22) the following shall be inser ted, namely:
23. ‘Domestic Tariff Area’ also denoted by the acronym ‘DTA’ shall have the same meaning assigned to it under
sub-section (i) of section 2 of the Special Economic Zones Act, 2005.
12. In Regulation 2, the existing clause (23) shall be re -numbered as clause (24).
13. In Regulat ion 3, clause (C) of sub -regulation (2) shall be substituted, namely: -
“C. Every Indian Re -insurer including Foreign Re -insurance Branches (FRBs) shall maintain a minimum
retention within India of 50% of Indian re -insurance business underwritten. Any retro cession to an IIO up to 20%
of Indian re -insurance business underwritten shall be reckoned towards the required minimum retention of 50%.”
14. In Regulation 3, sub Clause (b) of clause (A) of sub -regulation (3) shall be substituted, namely: -
“b. submit to the Authority, its proposed Re -insurance programme, for the forthcoming financial year in the
specified summary format, at least 45 days before the commencement of the financial year”
15. In Regulation 3, in sub clause (c) of clause (A) of sub -regulation 3, for w ords and figures; ‘within 30 days of
the commencement of the financial year ’, the words and figures ‘within 45 days of the commencement of the
financial year’ shall be substituted.
16. In Regulation 3, serial no. (i) of sub clause (c) of clause (A) of sub -regulation (3) shall be substituted,
namely: -
“i. its Board approved Final Re -insurance Programme specifically highlighting improvements in net retention per
insurance segment together with the variation, if any, from the Re -insurance Programme of the prec eding year as
well as from the proposed Re -insurance Programme submitted under sub clause (b) of clause (A) of sub
Regulation (3) of Regulation 3 .”
17. In Regulation 3, after sub clause ( d) of clause (A) of sub -regulation (3), following sub clause shall be
inserted, namely: -
“e. submit to the Authority, within 90 days of the commencement of financial year, a certification from the CEO
confirming that all Treaties associated with the Re -insurance Programme for the financial year have been received
in original, duly stamped and signed (or digitally signed), from all parties to the treaty.”
18. In Regulation 3, clause (D) of sub -regulation (3) shall be substituted, namely :-
“D. In addition to the requirements as per regulation 3(3)(C) above, every Indian Reinsurer an d FRB
writing re -insurance business, shall file the Board approved underwriting policy. Any subsequent change,
in the underwriting policy, shall be duly approved by the Board and filed with the Authority within 15
days of Board’s approval.”
19. In Regulation 3 , after clause (D) of sub -regulation (3), following clause shall be inserted, namely: -
“E. Every Indian insurer shall submit soft copies of list of Re -insurers w ith their credit rating, their shares in
the proportional and non -proportional Re -insurance arr angements along with final Re -insurance programme.”
20. In Regulation 3, sub -regulation (5) shall be substituted, namely: -
“5. Maintenance of Records
The record of l ist of Re -insurers with their credit rating, their shares in the proportional and non -proportio nal Re -
insurance arrangements, each and every re -insurance contract shall be maintained by every Indian insurer for the
period specified in the relevant extant r egulations and shall be made available to the Authority for inspection.”
21. In Regulation 4, unde r sub -regulation (2), the following shall be inserted, namely:
“Reinsurance placements with any International Pool or Risk sharing arrangement having CBRs as m embers,
participants or administrators shall also require prior approval of the Authority.”
22. In Re gulation 4, after sub -regulation (3), following sub regulation shall be inserted, namely: -
“4. To maximize retention in India and to increase domestic capacity, the Authority may undertake review of the
business underwritten, claims experience and lines of support given by a CBR, and based on the review, the
Authority may stipulate such conditio ns as may be considered necessary to achieve the stated objectives.”
23. In Regulation 5, sub -regulation (1) shall be substituted, namely: -
“1. Seeking lead re -insurance support:
Every Cedant shall abide by the following provisions whilst seeking best re -insurance terms:
A. Every Cedant shall firstly seek lead terms (other than emanating from obligatory cession) from all
Indian Re -insurers which have been without interruptio n transacting re -insurance business during
immediate previous complete three financial y ears and at least 4 other “Category 2” (as per clause
(b) of sub -regulation (2)(A) of Regulation 5) reinsurers.
B. No Cedant shall seek lead terms from CBRs/IIOs having cr edit rating below ‘A -‘from Standard &
Poor’s or an equivalent credit rating from any ot her International Rating Agency.
Provided that such requirement of minimum credit rating shall not be applicable if an IIO is a
subsidiary/ branch of an Indian insurer .
C. Except for facultative re -insurance protection, no cedant shall seek terms from any Indian Insurer,
which is not registered with the Authority exclusively to transact re -insurance business or from an
IIO which is not permitted to undertake re -insurance business b y IFSCA .
D. The cedant shall be responsible and accountable to comply with these regulations, irrespective of
whether the terms are obtained directly or through any Re -insurance Broker.
Explanation : A cedant may not seek terms from a Reinsurer o r an IIO which is a group/associate company of
other Indian Insurer.”
24. In Regulation 5, Clause (A) sub -regulation (2) shall be substituted, namely: -
“A. Every cedant shall secure maximum participation by ‘Categ ory 1’ and ‘Category 2’ reinsurers in order to
maximise retention within Indian market while fulfilling the minimum necessary placement with the lead
reinsurers quoting the best terms (other than emanating from obligatory cession). Every cedant shall abide by the
following Order of Preference whilst se eking placement:
a) Category 1: Indian Reinsurers
b) Category 2: IIOs (which invest 100 % of retained premiums, emanating from insurers in India, in the
DTA) and FRBs.
c) Category 3: Other IIOs;
d) Category 4: Other I ndian Insurers (only in respect of per -risk fac ultative placements in the insurance
segment for which the Insurer is registered to transact business) and CBRs.
Explanation 1: Except for facultative re -insurance protection, no cedant shall seek participati on from any Indian
Insurer, which is not regist ered with the Authority exclusively to transact re -insurance business and an IIO, which
is not permitted to undertake re -insurance business by IFSCA. Further such Indian Insurer and IIO shall not be
offered to lead on any reinsurance protection.
Explanati on 2: A cedant may opt not to offer participation to FRB or an IIO who declined to quote or did not
quote the terms.
Explanation 3: A cedant may not offer for participation to an Indian Reinsurer, FRB or a n IIO which is a
group/associate company of oth er Indian Insurer.
25. In Regulation 6, after sub -regulation (2) a proviso shall be inserted namely: -
“Provided that the cession limits as above shall not be applicable to cedants which place total reinsurance
premiums outside India up to rupees seventy -five crore during a financial year and the placements are with CBRs
having a rating of BBB+ and above.”
26. In Regula tion 12, after clause C in sub -regulation (2), the following clauses shall be inserted namely: -
“D. exposure limits of a CBR, with all cedants take n together;
E. framework for domestic and international Insurance Pools.”
27. After Regulation 12, a ne w regulation 13 shall be inserted namely:
13. Transition Provision
All reinsurance placements under any arrangements/ treaties for financial year 202 3-24 entered into by insurers
prior to the date of notification of the Insurance Regulatory and Development Authority of India (Re -insurance)
(Amendment) Regulations, 2023 shall continue for the remaining period of the year as per the terms therein.
Insure rs shall ensure that any new treaties/ arrangements entered into on or after the date of notification of
Insurance Regulatory and Development Authority of India (Re -insurance) (Amendment) Regulations, 2023 shall
be compliant with provisions of these regula tions.
CHAPTER - II
AMENDMENT TO THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
(REGISTRAT ION AND OPERATIONS OF BRANCH OFFICES OF FOREIGN REINSURERS OTHER
THAN LLOYD’S) REGULATIONS, 2015.
28. After Regulation 4, the following explanation s hall be inserted, namely: -
“Explanation: Any retrocession to IIO up to 20% of Indian re -insurance business underwritten shall be reckoned
towards the required minimum retention of 50%.”
29. In Regulation 5, sub -regulation (g) shall be substituted, namely: -
“(g) The applicant shall infuse a minimum assigned capital of Rupees Fifty crore into the branch office”
30. In Regulation 11, clause (a) of sub -regulation (2) shall be substituted, namely: -
“(a) Documentary proof of evidence of having Rupees Fifty crore or more assigned capital”
31. In Regulation 18, clause (a) of sub -regulation (2) shall be substituted, na mely: -
“(a)Ten lakh rupees, or”
CHAPTER - III
AMENDMENT TO THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
(LLOYD’S INDIA) REGULATIONS, 2 016.
32. After Regulation 8, the following explanation shall be inserted, namely:
“Explanation: Any retrocession to an IIO up to 20% of Indian re -insurance business underwritten shall be
reckoned towards the required minimum retention of 50%.”
33. In Regu lation 37, clau se (a) of sub -regulation (2) shall be substituted, namely: -
“(a)Ten lakh rupees, or”
34. In sub -regulation (4) of Regulation 50 , the word “investment” shall be omitted.
DEBASISH PANDA, Chairperson
[ADVT. -III/4/Exty./ 371/2023 -24]
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