IRDAI to rule on licensing reinsurers within four months

The Insurance Regulatory and Development Authority of India [IRDAI] has said it will decide on whether to grant reinsurers licences to operate in the country within the next four months. Swiss Re, Munich Re, Hannover Re and Lloyd’s have all approached the regulator seeking permission to open offices in India.

Hyderabad, Apr 19 () Regulator Irdai today said it will take a call within four months on granting licences to four reinsurance companies which have sought approval to start operations in the country.Swiss Re, Lloyd's, Munich Re and Hannover from Germany have approached the Insurance Development and Regulatory Authority of India (IRDAI) for licences to open offices in the country, its Chairman T S Vijayan said."We have got applications from four companies to establish branches here (in India). We are processing it. I think it will take another 3-4 months... (in) the next board meeting we will decide," Vijayan told reporters on the sidelines of Irdai's 'Formation Day' celebrations.Lloyd's, the global specialist insurance and reinsurance market, on April 1 announced its intention to apply for a licence for reinsurance branch based in Mumbai following Irdai's publication of regulations governing the reinsurance sector earlier that week.Replying to query, he said growth in life and non-life segments was in double digit during last year while it is 30-35 per cent in case of health insurance.Vijayan said the final figures for the total premium collected are yet to come and the growth would be better during the current year on the back of expected good monsoons.Answering a query, he said the regulator has no role in determining the premium amounts.Earlier in his address, he advised the companies to focus on introducing simple products to suit the needs of the common man.Y V Reddy, chairman of the 14th Finance Commission, said the call centres set up by Irdai for creating awareness on insurance should act as a "query centre" and "purposive financial literacy centre on demand". GDK NSK ABM