Irdai asks reinsurers to keep 50% of Indian underwritten biz within country

Any retrocession up to 20%, to the branch of a foreign insurer shall be adjusted against the required minimum retention of 50%

The Insurance Regulatory and Development Authority of India (Irdai) has, in a revised exposure draft on reinsurance regulations, mandated that Indian reinsurers, including foreign reinsurance branches, have to retain a minimum of 50 per cent of their Indian reinsurance business underwritten, within the country.

Also, any retrocession to an IIO (International Financial Service Centre Insurance Office) up to 20 per cent of Indian reinsurance business underwritten shall be adjusted against the required minimum retention of 50 per cent, the regulator has said.

IIO means a branch office that has been opened by a foreign entity to transact direct insurance business