Introduction
In its continuing objective to promote insurance penetration in the country and to enhance ease of doing business, the IRDAI has issued an exposure draft on the IRDAI (Re-insurance) (Amendment) Regulations 2022 of 21 October 2022 (“Draft Amendment”). The Draft Amendment proposes to “harmonize the provisions of various regulations applicable to insurance companies and Reinsurers including Foreign Reinsurance Branches (FRBs) and Lloyd’s” and proposes changes to the Order of Preference to be followed by a Cedant[1] while reinsuring its risks as well as the minimum retention[2] to be maintained by Indian reinsurers, Foreign Reinsurers’ Branches (“FRBs”) and Lloyd’s India.
The Draft Amendment, if notified, would amend: (i) the IRDAI (Re-insurance) Regulations 2018 (“Reinsurance Regulations”), (ii) IRDAI (Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) Regulations 2015 (“FRB Regulations”), and (iii) IRDAI (Lloyd’s India) Regulations 2016 (“Lloyd’s Regulations”).
