Chennai: The insurance regulator has granted special approval for 11 cross-border reinsurers in the current financial year (FY20). However, the IRDAI has placed a ceiling on the share of the total reinsurance premium that can be ceded to them.
The special approval is based on the submission made by cross-border reinsurers (CBRs) and recommendations made by insurers and reinsuers, IRDAI said in a notification. The 11 cross border reinsurers include, Republican Unitary Enterprise of Belarus, Nepal Re, East Africa Re of Kenya, Russian Ingosstrakh Joint Stock Insurance Co, Vietnam’s Bao Viet Insurance Corporation and Asian Re of Thailand.
Apart from the domestic reinsurer GIC Re, a few international reinsurers operate in the country by opening their branches. However, the demand is not fully met, as the credit rating requirements are not sometimes met by these reinsurers and hence IRDAI grants permission to cross-border reinsurers. CBRs are reinsurers who do reinsurance business with Indian insurers without having a physical presence in India.
