Page 8 - Insurance Times March 2017 Sample

IRDAI

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IRDAI amends actuarial Swiss Re receives approval from IRDAI to open Indian

appointments branch
Insurance regulator IRDAI has pro- Reinsurance major Swiss Re has received nod from the Insurance Regulatory
jected adjustments in the 16-year-old and Develop- ment Author-
regulations regarding Appointed Ac-
ity of India (IRDAI) to
tuaries by amending the framework
for their appointment and functions. open a branch office
in Mumbai.
IRDAI forms laws for re-
With this approval, Swiss re will be able to operate in India and offer both non-
viewing life products life and life and health reinsurance solutions directly to clients and brokers in
the country. "This is a significant milestone for us. As a reinsurer, we have served
Indian insurers for over 87 years. Our new India branch, together with Swiss Re
Global Business Solutions centred in Bengaluru, represents our commitment and
investment in India's long-term future, and our ambition to be part of this dy-
namic high growth market," said Swiss Re chief executive officer Reinsurance,
Asia, Jayne Plunkett.

Swiss Re is among the first five foreign companies to obtain a licence to sell
reinsurance in India.
IRDAI has composed a board to re-
view the set of laws for life insurance Kalpana Sampat, currently managing director of Swiss Re Services India, will
products. Amitabh Chaudhry, Chief head the Swiss Re India branch as its chief executive officer (CEO).
Executive officer, HDFC Standard Life IRDAI checks foreign reinsurance guidelines
Insurance Company, has been ap-
pointed as Chairman of the eight- The Insurance Regulatory and Development Authority of India has executed
member committee. The other distin- reinsurance guidelines that allows GIC Re and some foreign players with Indian
guished members include K S branches the first right of refusal with immediate effect.
Gopalakrishnan, CEO, Aegon Religare
IRDAI's decision has shocked both general insurers and brokers, who feel this
Life Insurance, Sai Srinivas, Appointed would mean protection for one set of players. "Giving preference to some play-
Actuary, Bajaj Allianz Life Insurance ers would be against the principle of the ease of doing business, something the
and Sandeep Bakshi, CEO, ICICI Pru-
dential Life. The committee will review Indian government wants to improve upon," said a general insurance execu-
the existing framework of IRDAI-linked tive.
and non-linked insurance product regu- A chief executive officer of a general insurance company said: "Earlier general
lations besides other key aspects such insurers, after insuring a particular project, would go around the world seeking
as changing economic and insurance the best rates for reinsurance. This gave rise to competition and allowed cost-
market environment, customers' needs saving for both the insurer and the policyholder." With this move, the market
and expectations and insurance prod- will move from free competition to prescriptive right of first refusal to a hand-
uct flexibility and innovations. ful of players. There are fears of cartelisation as well.
8 The Insurance Times, March 2017

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