The Insurance Regulatory and Development Authority of India (IRDAI) is working to make India a global reinsurance hub. IRDAI Chairman Debasish Panda said that the reinsurance space is an increasingly important economic activity due to the vast majority of emerging risks. He added that capital mobilization from the domestic and global reinsurance markets is critical for India’s insurance sector.
To boost the country’s reinsurance sector, IRDAI has introduced a number of reforms including the introduction of a reinsurance intermediary called a “Reinsurance Broker”. The IRDAI is also taking steps to simplify regulations and processes and to create an enabling environment. The authority has also established a Reinsurance Development Fund to promote research, innovation and development in the area of reinsurance. Lastly, the IRDAI is also looking to increase the participation of global reinsurers in the Indian market.