IRDAI Circular 2024: Guide to Advance Reinsurance Program Submission

Introduction

The Insurance Regulatory and Development Authority of India (IRDAI) has released an essential circular on January 5, 2024, regarding the submission of Advance Reinsurance Programs. This directive, outlined in the IRDAI (Re-Insurance) Regulations, 2018, impacts all insurers and exempted insurers. This article explores the key components of the circular, clarifying the regulatory framework and the obligations it places on insurers.

Detailed Analysis

1. Regulatory Framework (IRDAI (Re-Insurance) Regulations, 2018)

The IRDAI (Re-Insurance) Regulations, 2018, underpin the recent circular. These regulations specifically address the operational aspects surrounding reinsurance placements. Regulation 3(A) mandates that all insurers submit an advance reinsurance program to the Authority, adhering to a defined summary format, at least 45 days before the start of the financial year.

2. Submission Formats (Annexure A and B)

The circular delineates clear submission formats for General Insurers and Life Insurers/FRBs, provided in Annexures A and B respectively:

• Annexure A: For General Insurers, including standalone Health Insurers, Reinsurers, FRBs, and Exempted Insurers.
• Annexure B: Specifically for Life Insurers and FRBs. Insurers must ensure compliance with these formats during submission.

3. Guidelines for Information Submission (Annexure C)

Insurers should closely adhere to the guidelines documented in Annexure C when submitting information in the prescribed format. This promotes a standardized process and ensures regulatory compliance.

4. Timely Submission Obligations

Timeliness in submission is heavily emphasized. Each insurer's Board is responsible for ensuring the advance reinsurance program is submitted to the Authority within the designated timeframe outlined in the regulations. For Exempted insurers lacking a Board/CEO/CFO, the Authorized Person(s) must assume responsibility for timely submission.

5. Certification Requirement (Annexure D)

To confirm the accuracy of the information contained in the summary Reinsurance program, insurers must submit a certificate signed by both the CEO and CFO, following the format set out in Annexure D. This stipulation highlights the significance of accountability at the executive level.

Conclusion

The IRDAI circular is a critical framework for insurers, detailing the processes for submitting Advance Reinsurance Programs. Compliance with specified formats, adherence to guidelines, and punctual submissions are essential.