Page 13 - Insurance Times December 2022

India, various committees deliberated
IRDAI sets up health insurance consultative
on the repatriation of excess assigned
committee capital by Foreign Reinsurance Branches
IRDAI has set up a 15-member committee for two years, asking it to give (FRB) and Lloyd's India.
suggestions for increasing health insurance coverage in the country. As per IRDAI norms, the registration of
The 15-member committee is headed by Rakesh Joshi, member at IRDAI, branch offices of foreign reinsurers
and it will have representatives from the healthcare and insurance indus- other than Lloyd's have 'assigned capi-
tries. tal' and net owned funds (NOFs) as the
capital requirements for setting up busi-
From the healthcare industry, Devi Prasad Shetty, chairman of Narayana
ness in India.
Health; Naresh Trehan, chairman and managing director (MD) of Medanta
Heart Institute; Alexander Thomas, national president of Association of The applicant's NOF should not be less
Healthcare Providers India; Arati Verma, senior vice president of Max than the prescribed amount of Rs. 500
Healthcare, and Ajay Nair will be part of this consultative committee. crore at any time and should infuse a
minimum assigned capital of Rs. 100
Neerja Kapur, chairman and MD of New India Assurance; Bhargav Dasgupta,
crore into the branch office.
MD and CEO of ICICI Lombard General Insurance, Mayank Bathwal, CEO of
Aditya Birla Health Insurance, and Vibha Padalkar, MD and CEO of HDFC Life, After careful examination of the recom-
will be part of the committee from the insurance industry. mendations of the working groups, it is
noted that to ensure sufficient reinsur-
The committee will also have representation from the third party adminis-
ance capacity in India and to attract
trators (TPA) with Nayan Shah, CEO, Paramount Health Services & Insurance
more reinsurance players for offering
TPA and Vikram Chhatwal, CEO, Medi-Assist Insurance as members.
reinsurance at a competitive price, the
free movement of assigned capital for
IRDAI proposes changes to Following that, the insurer has to offer foreign reinsurance branches is required.
best terms for participation to the vari-
reinsurance rules "Accordingly, it is decided that FRBs and
ous reinsurance providers in the follow-
Lloyd's India are permitted to repatri-
IRDAI has released an exposure draft ing order: GIC Re and then category I
ate excess assigned capital with prior
seeking amendments to reinsurance branches; other Indian reinsurance
approval of the Authority," the Insurance
regulations. companies or category II branches; for-
Regulatory and Development Authority
In the draft, the IRDAI has sought to eign reinsurers' branches in special eco-
of India (IRDAI) said in a circular.
revise the order of preference while nomic zones; and other Indian insurers
placing reinsurance business, among and cross-border reinsurers. However, the relaxation comes with
other things, which could prove to be The regulator is proposing that in the certain riders such as a minimum as-
undesirable for state-owned General order of preference first there will be signed capital of Rs. 100 crore or a
Insurance Corporation (GIC Re). the category I Indian reinsurers, includ- higher sum specified by IRDAI at the
time of grant of certificate of registra-
ing GIC Re, foreign reinsurance
"The objective of these regulations is to
tion; submission of a request justifying
harmonise the provisions of various regu- branches (FRBs), Lloyd's India, and In-
the reasons for repatriation and a cer-
ternational Financial Service Centre In-
lations applicable to insurers and
tificate stating foreign reinsurers' net
surance Offices (IIOs).
reinsurers, including foreign reinsurance
owned funds of Rs. 5,000 crore or as
branches (FRBs), and Lloyd's to enhance
prescribed under the Insurance Act.
ease of doing business by amending the Foreign reinsurers can re-
regulations," IRDAI said in a circular.
patriate 20% of assigned IRDAI chief signals faster
Currently, Indian insurers are required
capital: IRDAI
to seek best terms for their facultative reforms to boost insurance
IRDAI has allowed foreign reinsurance
and treaty surpluses from Indian
penetration
reinsurers holding minimum prescribed branches, including Lloyd's India, to re-
Irdai chief Debashish Panda said that
credit ratings for the past three years, patriate up to 20% of the excess as-
regulatory reforms and technology in-
now on General Insurance Corporation signed capital to attract more players
novation like sand boxes would be ex-
(GIC Re), and three category I branches and allow free movement of capital.
pedited to increase insurance penetra-
of foreign reinsurers. As part of the ease of doing business in
tion and density.
12 December 2022 The Insurance Times