Final reinsurance regulations are set to be released by the end of February, IRDAI Chairman T S Vijayan has said.
Mr Vijayan, who is retiring next month, told reporters last Friday on the sidelines of a conference that the regulations will define the reinsurance business in India and the order of preference for the different types of reinsurers.
In an exposure draft released last November on reinsurance regulations, IRDAI stated that first preference is to be given to Indian reinsurers which have been transacting business for at least three continuous years and then other Indian reinsurers. Next in line would be branches of foreign reinsurers, Lloyd’s India, cross-border reinsurers, and Indian insurers. However, exceptions will be made for certain lines of business, waiving the order of preference for: aviation, life insurance, marine hull, large infrastructure projects, petrochemical and refinery plants, large power plants, oil and energy, cyber risk and climate change risk. Mr Vijayan was asked the questions after the deadline for feedback on the exposure draft lapsed on 20 January.
The IRDAI approved licences last year for several foreign reinsurers to open their branches in India.
When asked about what other regulations can be expected, Mr Vijayan said life insurance product regulations are in the pipeline but will take some more time. The IRDAI has to review feedback received on the subject, and ascertain whether the regulations would be in line with international standards and suit the country profile.