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Title: Guidelines
Reference No.: IRDAI/RI/GDL/MISC/038 /01/2020
Date: 31/01/2020
Guidelines on filing of Re-insurance arrangements with the IRDAI



Ref.: IRDAI/RI/GDL/MISC/038/01/2020 Date: 31stJanuary,2020



All Insurers asdefined under Sec. 2 (9) of the Act, IFSC IIOs, Exempted Insurers;


Re:Guidelines on filing of Re-insurance arrangements with the IRDAI.


1.   This has reference to the Reg. 3 (3) (A) (b)of the IRDAI (Re-insurance), Regulations, 2018 as per which, the Insurers asdefined under Sec. 2 (9) of the Act, IFSC IIOs, Exempted Insurers (hereinafterreferred as ‘insurer’ for the purpose of these guidelines), have to submit itsre-insurance Programme for the forthcoming financial year, forty-five (45) daysbefore commencement of the financial year;


2.   In addition to submissions as per provisionsof above mentioned regulations, the insurers shall comply with the following;


a.   to confirm that, the reinsurance treaty(ies)applicable for particular financial year meet the risk transfer requirements. Anyre-insurance arrangement which do not have pure risk transfer such as CapitalGearing Treaty, Alternate Risk Transfer Solution, Financial Re-insurance,non-traditional structured re-insurance solution or any other term or namecalled, need to be informed to the IRDAI;


b.   in case the insurer intends to adopt ART, non-traditionalstructured solutions, Financial Re-insurance, then it shall take prior approvalof the Authority, as per provisions of Reg. 8 of the IRDAI (Re-insurance)Regulations, 2018;


c.   to inform the IRDAI on or before 1stMarch of every year about any proposed re-insurance arrangement (other thanpure risk transfer / traditional re-insurance contract) to be entered in to bythe insurer as specified in para 3 (a) of this guidelines;


d.   to obtain due confirmation from the leadreinsurer(s) specifying the methodology used for such risk transfer and itscompliance and submit the same with the IRDAIwhenever called for;


3.   We reiterate that, the accounting treatmentfor the ART agreements shall be as per the provisions of the IRDA Circular No.IRDA/CIR/F&A/053/DEC-04 dated 08th December, 2004;


4.   This is issued in exercise of the powersconferred under Sec. 14 of the IRDA Act, 1999.


Theseguidelines shall be applicable with immediate effect.





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