IRDAI has rationalised the compliance norms for branches of foreign reinsurance companies, including Lloyds, operating in India. The regulator has also exempted non-life insurers and foreign reinsurers from disclosing underwriting profits for each segment. The relaxations follow representation from companies and are aimed at bringing the insurance markets onshore.
RecentlyIRDAI issued a circular exempting foreign reinsurance branches from publishing their financial results in newspapers and from filing stewardship returns where they disclose their action taken as investors in companies. The regulator has also exempted all general insurance companies and reinsurance branches from making public disclosures on their underwriting performance segment-wise.
According to an insurance broker, if India wants to increase domestic reinsurance capacity or seek to become a regional reinsurance hub, it needs a regulatory environment that will draw international companies. He added that many large reinsurers do not need a local presence as they can do business overseas, and a local presence adds to compliance costs.
