Foreign reinsurers setting up branch offices in India will have to be in reinsurance business for at least 10 years, the Insurance Regulatory and Development Authority of India (Irdai) said in its guidelines.
All appointments, including remuneration, of senior management in this branch office will need Irdai’s nod.
In its guidelines on opening branch offices of foreign reinsurers, Irdai said the applicant has to be registered or certified in a national regulatory environment and with whom the government of India has signed a double-taxation avoidance agreement.
The net owned fund of the applicant has to be Rs 5,000 crore at any time. Also, a minimum assigned capital of Rs 100 crore should be infused into the branch office. The branch office has to retain the core activities such as underwriting, claims settlement and regulatory compliance, while others such as back office servicing and IT can be outsourced.
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