Reinsurance firms approach IRDAI for separate set of accounting norms

Reinsurance companies have approached the IRDAI for a separate set of accounting and reporting norms for the Reinsurers.

At present, re-insurers in the country, use the same reporting norms prescribed by the regulator for insurance companies.

The discussions come soon after the IRDAI eased rules for foreign reinsurers to create a more level playing field with GIC.

While the GIC Re continues to have the first right of refusal, foreign reinsurers can bid for the contracts and win if they quote lower prices.

Experts believe a separate set of reporting guidelines are necessary for reinsurers, as their nature of business and cashflows is different. “The business of reinsurance is different from that of insurance, and so the reporting norms have to be different.