Rationalization of compliance requirements

IRDAI vide reference no. IRDAI/F&A/CIR/MISC/99/5/2022 has issued a Circular on ‘Rationalization of compliance requirements’ dated May 12, 2022 (Circular).

Background

• The Circular draws reference of the earlier prescriptions issued by IRDAI on ‘Public Disclosures by Insurers’ dated, September 30, 2021 and ‘Revised Guidelines on Stewardship Code for insurers in India’ dated, February 7, 2020.
• IRDAI has reviewed the requirement of Public Disclosures and representations pertaining to following:
• Rationalization of compliance requirements of Foreign Reinsurance Branches (FRBs)
• Dispensing with the Form NL 40 on disclosure of underwriting performance by insurers on their respective websites.
• IRDAI has issued certain directions to rationalized the compliance requirements pertaining to returns to be filled by FRBs, Lloyds India and disclosure of NL-40 be filled by insurers

Directions issued by the IRDAI are as follows:

• Publication of the half yearly and annual revenue account, profit & loss account, balance sheet and analytical ratios etc. by FRBs and Lloyd’s India in the newspapers is no longer required. However, the true and accurate abstract of various returns may published for the purpose of publicity on a voluntary basis.
• FRBs and Lloyd’s India do not invest in equity instruments and they mainly invest in Government Securities and Debt markets. Based on the investment exposures of the branches of foreign reinsurers and Llyod’s India, following exemptions are granted :
• The entities, whose investment policy does not permit the investment in equity are exempted from the application of Common Stewardship Code, disclosure requirement and returns. The public disclosure may accordingly, be shown as ‘Not Applicable’
• The entities, whose investment policy allows equity investment but have not made any investment in equity- the Code is applicable. However, a Nil return will be sufficient compliance for the same
• Other entities have to comply with the prescribed requirement
• Uploading of NL-40 on the website of the respective insurers as prescribed under the Public Disclosures to be discontinued. However, the same may be filed to the Authority by e-mail marked to finance-nonlife@irdai.gov.in .

Source category: IRDAI

Attachments

• /2022/37_2022-05-12_Rationalization_of_compliance_requirements.pdf