To qualify for auto-renewal of a CBR, the insurer will ensure that credit rating of the CBR should not be less than ‘Standard & Poor’s A- or equivalent. The latest credit rating of the CBR should not be prior to 12 months from the date of application for auto-renewal
Hyderabad:
The insurance regulator IRDAI has now decided to allow auto-renewal of File Reference Numbers (FRNs) of cross border reinsurers(CBRs) by the insurer itself, provided such overseas reinsurers meet the required criteria set by the regulator.
The IRDAI has taken such a decision after considering the feedback and also inputs from the task force on non-life insurers and reinsurers and the working group on ease of doing business.
The CBRs, who meet the eligibility criteria as per the extant regulations, will qualify as ‘Eligible CBRs’.
The CBRs, who do not meet the eligibility criteria, are regarded as ‘Non-Eligible CBR’;
The insurers, who wish to place re-insurance business with CBR, have to file an online application with the IRDAI at https://cbr.irdai.gov.in/login.aspx (CBR Portal) in the specified form, for allotment of FRN to CBRs under the category of either ‘Eligible CBR’ or ‘Non-Eligible CBR’, as the case may be;
The IRDAI may raise any other requirements, if necessary, for processing of such application while allotting FRN to CBR. After examination of submissions made by the insurer, the regulator will allots a system generated FRN to the CBR.
Filing of application for allotment of FRN to CBR has to commensurate with reinsurance programme of the insurer, as per extant regulations, said the IRDAI.
The insurer can generate FRNs on their own for the CBRs who qualify for auto- renewal.
The CBRs, who do not qualify for auto-renewal, will have to obtain FRN on annual basis.
To qualify for auto-renewal of a CBR, the insurer will ensure that-
(i) Credit rating of the CBR should not be less than ‘Standard & Poor’s A- or equivalent.The latest credit rating of the CBR should not be prior to 12 months from the date of application for auto-renewal;
(ii) CBR has been allotted FRN under ‘Eligible CBR’ by the IRDAI in the financial year preceding to the financial year for which application is made.
While doing auto-renewal process, if the applicant Insurer notices that CBR does not meet the requirements , it can file the application for renewal in another category
The portal would be available for auto-renewal for the current financial year and would also be available three months in advance for the next financial year. The auto-renewal facility is available for three consecutive financial years for a CBR. After three financial years, fresh application has to be submitted by the insurer through CBR portal.