Indian reinsurance regulation could affect life sector
The new Indian reinsurance regulations could affect smaller life insurers and reinsurers as risk retention limit assessments are amended.
The new regulation will see a change in the way that life insurers assess risk retention limits, requiring them to decide on the limit based on the value of a policy, and not the total value of life insurance that an individual has taken.
According to industry reports, there are concerns over a large proportion of the risk sitting on the books of life insurers, which could have a significant impact on smaller insurers.
Despite being introduced in 2013, the impact of the regulation is only expected to become evident in the coming months as the new product approval process ended in March, 2014.