IRDAI more demanding with foreign reinsurers

The Insurance Regulatory and Development Authority of India (IRDAI) now requires a minimum capital of 15.3 million USD from foreign reinsurers wishing to establish a branch in India.
This new measure is accompanied by a classification of foreign reinsurers operating in the country under two categories:

• Category I for branches that maintain a minimum retention of 50% of their reinsurance business in India.
• Category II for those whose minimum retention is of 30%.

The new regulations also oversee the profits generated by the branch. Henceforth, the transfer will be subject to the IRDAI approval.
The operation also must comply with the requirements set by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act.