IRDAI's Exposure Draft For Reinsurance 2022

Introduction

In its continuing objective to promote insurance penetration in the country and to enhance ease of doing business, the IRDAI has issued an exposure draft on the IRDAI (Re-insurance) (Amendment) Regulations 2022 of 21 October 2022 ("Draft Amendment"). The Draft Amendment proposes to "harmonize the provisions of various regulations applicable to insurance companies and Reinsurers including Foreign Reinsurance Branches (FRBs) and Lloyd's" and proposes changes to the Order of Preference to be followed by a Cedant¹ while reinsuring its risks as well as the minimum retention² to be maintained by Indian reinsurers, Foreign Reinsurers' Branches ("FRBs") and Lloyd's India.