Page 237 - Reinsurance Management IC85

Reinsurance Management

7. Discuss Reinsurance after liberalization of
Insurance industry in India.

Ans: Reinsurance After Liberalization
As a part of the process of liberalization of the
insurance industry in India, the Insurance Regulatory
& Development Authority (IRDA) is vested with
the authority of regulating and controlling the
conduct of insurance business in India. IRDA
frames rules and regulations for various aspects
of the insurance business including reinsurance.
The current regulations relevant to reinsurance are
attached as an appendix at the end of this course.

The four subsidiaries viz. National, New India,
Oriental & United India, have been demerged from
GIC and private insurance companies have been
allowed to do insurance business after obtaining
license from IRDA. Each insurer in India is free to
structure his annual reinsurance programme in
compliance with regulations and solvency
requirements.

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