The Insurance Regulatory and Development Authority of India (IRDAI) is about to publish a report recommending the most efficient way to implement and operate branch offices of foreign reinsurers in India. It will be very interesting to see if this report will provide any further clarifications regarding the order of preference when placing reinsurance and how to proceed with offering mandatory cessions from the perspective of local cedants wanting to access global reinsurance capacity.
On November 23 2016 the IRDAI set up a committee to make recommendations for the efficient implementation and operation of the order of preference for cessions specified in Regulation 28(9) of the Branch Office Regulations. The committee, which was expected to come out with a report and guidelines by December 9 2016, must set out: the procedure for establishing the order of preference for cessions; and the manner of seeking quotes on best terms and establishing timelines for accepting the best offer. The committee report is eagerly awaited by the insurance industry, as it is expected to clarify the implementation of Regulation 28(9) of the Branch Office Regulations and is likely to affect Indian insurers' reinsurance programmes in future. reinsurance regulatory framework.