Current issues in General Insurance Reinsurance Regulations and Opportunities 3 July 2015 Disclaimer Our understanding is that India is looking to develop itself as an international (re)insurance center besides, having SEZ as a (re)
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Presentation Transcript
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Current issues in General Insurance Reinsurance – Regulations and Opportunities 3 July 2015<br>
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Disclaimer Our understanding is that India is looking to develop itself as an international (re)insurance center besides, having SEZ as a (re) insurance hub, seeking to attract (re) insurers to underwrite both onshore and offshore business
There’s also an objective to promote Ease of Doing Business in line with the International Best Practices
India is also looking ensure that it benchmarks with the other Hubs – Hong Kong, Singapore and also with Dubai International Financial Centre
The following comments are therefore to accommodate these objectives rather than to cater to any external entity<br>
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Regulations for Registration and Operations of Branch Offices of Foreign Reinsurers (excluding Lloyd’s) Procedure for registration
Requisition for registration application
Eligibility norms
Consideration of requisition for registration application
Application for registration and its consideration
Conditions governing the registration of branches of foreign reinsurers
Manner of computation of annual fee
Operational issues pertaining to Branch offices of foreign reinsurer<br>
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Regulations for Registration and Operations of Branch Offices of Foreign Reinsurers (excluding Lloyd’s) Operational issues pertaining to Branch offices of foreign reinsurer
Geographical Scope
Appointment of Chief Executive Officer and Key Management Personnel
Outsourcing
Accounting and Investments
Reinsurance and Retrocession
Order of preference for cessions by Indian Insurers
Repatriation of surplus
Delegated authorities
Supervision and Control<br>
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IRDAI (IFSC) Guidelines 2015 Reinsurance Business
Eligibility Criteria
Application and consideration for registration
Scope of Operations
Assigned Capital
Direct insurance Business in SEZ
Terms, conditions and requirements of Certification of Registration
Applicability of the provisions of Insurance Act, 1938<br>
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Building a successful (re)insurance hub: Lessons from Dubai and Singapore Dubai and Singapore are the undisputed reinsurance centers for Middle East and Emerging Asia
It’s a consequence of acute foresight and careful economic engineering
Ingredients of a reinsurance hub
Economic and political stability
Quality of local legislation and regulation
Ease of Doing Business
Cosmopolitan environment
Availability (importability) of highly skilled finance professionals
Adequate education and training facilities
Competitive tax environment
Convenient geographical location
Available capacity for mainline and niche segments
Cluster of services – specialized lawyers, Loss adjusters, Risk Engineers, forensic Accountants and HR Consultants etc.<br>
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DIFC – A purposefully built free zone DIFC offers its member companies major benefits
Full foreign ownership
Zero tax rate
No restrictions on capital convertibility
No restrictions on profit repatriation
Cluster of reinsurers, Lloyd’s cover holders, MGAs and other specialized service providers
The Free Zone has its own independent regulator: DFSA
Committed to risk and principles based approach
Offers independent common law judiciary with jurisdictions over civil and commercial disputes
Cluster of 18 (re) insurers, 37 intermediaries and 16 specialized services<br>
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Singapore – a nation wide regulatory framework The (re)insurance hub of Singapore offers a common, nation-wide legal and regulatory framework for both onshore and offshore business
Singapore has become world’s most competitive economy
English common law system
Sophisticated regulatory environment
Competitive tax rules (10% corporate tax for offshore business)
Superior quality of living and a deep talent pool
Removal of foreign ownership limits and Risk Based Capital framework
Singapore has 78 direct insurers, 31 reinsurers, 64 captives, and 73 Brokers – operators regulated through SIF & OIF<br>
