New legislation for foreign reinsurance branches

The Indian authorities have released a draft regulation project on the activity of branches of foreign reinsurers outside Lloyd's scope. The new draft also portrays the procedures for license application.

This bill follows the amendment of the insurance code last March. The new version allows foreign reinsurers to establish branches in India.

The green light from the Indian authorities will be granted to reinsurance companies with at least 10 years of activity and already holding a license in a third country. A minimum level of 790 million USD in shareholder’s equity and a rating of at least BBB+ granted by an international agency are required.

The minimum capital for a local branch is set at 500 million INR (7.9 million USD). The approval of the legislator of the State of origin is also needed.

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