Page 58 - Insurance Times February 2023

ii. The insurers, who wish to place re-insurance busi- d) The auto-renewal facility is available for three
ness with CBR, shall file an online application consecutive financial years for a CBR. After
with the Authority at https://cbr.irdai.gov.in/ three financial years, fresh application has to be
login.aspx (CBR Portal) in the form as specified submitted by the insurer through CBR portal.
at Annexure – 1, for allotment of FRN to CBRs
ii. Process for Renewal of FRN for the CBR, who does
under the category of either ‘Eligible CBR’ or
not qualify for Auto-renewal:
‘Non-Eligible CBR’, as the case may be;
a) On completion of every financial year, any in-
iii. The Authority may raise any other requirements, surer may make an application for Renewal of
if necessary, for processing of such application FRN through the CBR portal.
while allotting FRN to CBR. After examination of
b) The Authority, on examination of submissions
submissions made by the insurer, the Authority
made by the insurer, may allot system gener-
allots system generated FRN to the CBR;
ated FRN.
iv. Filing of application for allotment of FRN to CBR
c) The validity of renewed FRN allotted to such
shall commensurate with Reinsurance
CBRs shall be for one financial year.
programme of the insurer, as per extant regu-
3. General Provisions:
lations.
i. No insurer shall place re-insurance business with
B) Application for Renewal of FRN:
any CBR without valid FRN.
The Insurer can generate FRNs on their own for the
ii. The Authority may allot country wise separate FRN
CBRs who qualify for Autorenewal. The CBRs, who
to the CBR.
do not qualify for Auto-renewal, shall have to ob-
iii. The facility for Auto-renewal would be available for
tain FRN on annual basis. The detailed procedure
is as under: FY 2023-24 and thereafter.
i. Process for ‘Auto – Renewal’ of FRN: iv. Once FRN is allotted for a particular CBR, the same
a) To qualify for Auto-renewal of a CBR, the shall be used by other insurer for placement of re-
Insurer shall ensure that - insurance business with such CBRs.
(i) Credit rating of the CBR shall not be less v. The Insurer, while placing reinsurance business with
than ‘Standard & Poor's A- or equiva- CBR (who has valid FRN), shall satisfy itself and is
lent. The latest credit rating of the CBR solely responsible to ensure that the CBR meets the
shall not be prior to 12 months from eligible conditions as per the extant regulations.
the date of application for Auto-re- vi. The Insurer shall place all the re-insurance business
newal; placements made with the ‘Non-Eligible’ CBRs be-
(ii) CBR has been allotted FRN under ‘Eli- fore its Board of Directors for their approval / rati-
gible CBR’ by the Authority in the finan- fication,and shall file within fifteen days the certi-
cial year preceding to the financial fied copy of such resolution with the Authority.
year for which application is made;
vii. The insurer, within thirty days of commencement
(iii) necessary and latest information is of the financial year, shall submit a certificate of
filed and compliance (Annexure-2) to the Authority confirm-
(iv) Such CBR meets the other require- ing that all the re-insurance placements are made
ments as per Reg. 4 (1) of IRDAI (Rein- with the CBRs who comply with the eligibility cri-
surance) Regulations, 2018 to qualify teria or with those CBRs prescribed in these guide-
as ‘Eligible CBR’ lines. This certificate is to be filed with the Author-
ity along with submissions required to be made
b) While doing Auto-renewal process, if the appli-
under Reg. 3 (3) (A) (c) of the IRDAI (Re-insurance)
cant Insurer notices that CBR does not meet
Regulations, 2018.
the requirements as per (a) above, it shall file
the application for renewal as per the process viii. Notwithstanding anything contained in these guide-
stated in para B(ii) below. lines, the insurer shall comply with the Insurance
Act,1938 and other applicable regulations issued by
c) The portal would be available for Auto-renewal
the Authority from time to time.
for the current financial year and would also
be available three months in advance for the These Guidelines shall come into force from the date of the
next financial year. issue.

52 January 2023 The Insurance Times