3 foreign re-insurers set to get IRDA approval

The Insurance Regulatory and Development Authority of India (IRDA) is likely to accord final approval to three foreign re-insurers to set up onshore branches for starting direct operations by the end of this month.

IRDAI sources told BusinessLine that the IRDA Board would take up the subject at its meeting towards the end of June. Four foreign re-reinsurance players — Germany’s Munich Re and Hannover Re, Switzerland’s Swiss Re and France’s SCOR — have already got the preliminary approval, called R1 in the insurance parlance.

This time around, “the final approval may be granted to a few — most likely to three”, said an insider in the domestic regulator.

The final approvals will formally open up the Indian market for major foreign re-insurers to carry out direct business.

Foreign re-insurers have so far been operating in India through offshore sites.

IRDA, after opening the door for all foreign re-insurers, except Lloyd’s, for registration and setting up branches in the country last October, also paved way for Lloyd’s entry into the country in a separate regulatory guideline in November.