New regulatory standards

The Insurance Regulatory and Development Authority of India (IRDAI) intend to implement new guidelines for reinsurance branches held by foreigners. According to IRDAI, six international reinsurers have announced their intention to settle in India. Meanwhile, risk pricing and accounting rules will soon be formalized.

These measures aim at avoiding any support of a product by another. Each risk has to be priced at an adequate level. To finalize this approach and avoid any abuse, claims reserves will be studied over several years and compared to the rates currently charged.