Reduced the minimum capital requirement for branches of foreign reinsurance companies

On 23 August 2023, the Insurance Regulatory and Development Authority of India (Insurance) (Amendment) Regulation 2023 entered into force. The Regulation aims to harmonise the regulatory regime applicable to insurance and reinsurance companies and to encourage more foreign enterprises to set up business in the sector. The Regulation reduced the minimum capital requirement for branches of foreign reinsurance companies from INR 100 crore (approx. $12 million) to INR 50 crore (approx. $6 million).

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Services (Financial and insurance activities)

• Sources:

  • Government of India, IRDAI Reinsurance (Amendment) Regulation, 2023, https://irdai.gov.in/web/guest/document-detail?documentId=3791151, 23 Aug 2023
  • indianexpress, IRDAI cuts capital for foreign reinsurance branches for Rs 50 cr, https://indianexpress.com/article/business/irdai-cuts-capital-for-foreign-reinsurance-branches-for-rs-50-cr-8908274/, 25 Aug 2023