The Insurance Regulatory and Development Authority of India (Irdai) is considering introducing collateral requirements for reinsurance transactions with Cross Border Reinsurers (CBR). According to the proposed guidelines in an exposure draft, reinsurers play a crucial role in risk management for insurance companies. The introduction of collateral requirements would protect the interests of policyholders and insurers, fostering confidence in the market and attracting reinsurers to promote a healthy insurance ecosystem. The guidelines suggest that maintaining collaterals is essential given the increase in premiums collected by CBRs from the Indian reinsurance market.
Irdai Plans to Introduce Collaterals for Reinsurance Transactions with Cross-Border Reinsurers
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