Insurance Regulatory and Development Authority of India (IRDAI)

25 Aug 2023 2 mins Download PDF

Insurance Regulatory and Development Authority of India (IRDAI)

1. IRDAI cuts minimum capital requirement for foreign reinsurance branches from Rs 100 crore to Rs 50 crores with the provision to repatriate any excess assigned capital.
2. The move is intended to
   1. Increase the overall capacity of the reinsurance sector to accommodate growing demand and manage larger risks.
   2.  broader goal of positioning India as a global reinsurance hub.
   3. Enhance technical expertise within the industry, fostering an environment of excellence and innovation.
3. IRDAI:
   1. a statutory body formed under Insurance Regulatory and Development Authority Act, 1999.
   2. The body functions for overall supervision and development of the Insurance sector in India and ensuring the financial security of the Insurance market.
   3. The Insurance Act, 1938 is the principal Act governing the Insurance sector in India.
   4.  Entities regulated by IRDAI:
      1. Life Insurance Companies - Both public and private sector Companies
      2. General Insurance Companies - Both public and private sector Companies.
      3. Re-Insurance Companies
      4. Agency Channel
      5. Intermediaries such as Corporate Agents, brokers, third-party administrators, Surveyors and loss assessors.