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Mar 06, 2013
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New reinsurance rules for life insurers
The Insurance Regulatory and Development Authority (Irda) has told life insurance companies to reinsure with domestic reinsurers a percentage of the sum assured on each policy.The Irda (Life Insurance-Reinsurance) Regulations, 2013, said this percentage would be notified by the regulator and not exceed 30 per cent of the sum assured.Indian life insurers have reinsurance contracts with the sole reinsurer, General Insurance Corporation of India (GIC Re). However, there was no instruction to reinsure a percentage of the sum assured with it. Further, Irda has asked the life insurers in their reinsurance programme to have the maximum retention within the country. GIC Re has welcomed this.
Source -
http://www.business-standard.com
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