The Insurance Regulatory Development Authority of India, (IRDAI) on January 03, 2023, issued Guidelines on the issuance of File Reference Numbers (FRN) to Cross Border Reinsurers. This aims towards ease of doing business and to facilitate further development of the insurance industry.
This shall come into force on January 03, 2023.
The following has been stated namely: -
• The Cross Border Re-insurers (CBRs) play a significant role in the reinsurance market by providing reinsurance support/capacity.
• it lays down the process of Allotment of FRN to CBRs.
• No insurer shall place a re-insurance business with any CBR without a valid FRN.
• The Authority may allot country-wise separate FRN to the CBR.
• The facility for Auto-renewal would be available for FY 2023-24 and thereafter. Once FRN is allotted for a particular CBR, the same shall be used by another insurer for placement of reinsurance business with such CBRs.
• The Insurer, while placing reinsurance business with CBR (who has valid FRN), shall satisfy itself and is solely responsible to ensure that the CBR meets the eligibility conditions as per the extant regulations.
• The Insurer shall place all the re-insurance business placements made with the ‘Non-Eligible’ CBRs before its Board of Directors for their approval/ratification and shall file within fifteen days the certified copy of the such resolution with the Authority.
• The insurer, within thirty days of the commencement of the financial year, shall submit a certificate of compliance to the Authority confirming that all the re-insurance placements are made with the CBRs.
Disclaimer: refer to the document to view further details
[Notification No. Ref: IRDAI/REIN/GDL/MISC/2/1/2023]
