Irdai's protection to a few reinsurers riles industry

Implements the controversial guideline allowing first right of refusal to select players

In a move that favours few players in the reinsurance market, the Insurance Regulatory and Development Authority of India (Irdai), on Tuesday, implemented the reinsurance guidelines that allows GIC Re and some foreign players with Indian branches the first right of refusal with immediate effect.

Irdai’s decision has shocked both general insurers and brokers, who feel this would mean protection for one set of players. “Giving preference to some players would be against the principle of the ease of doing business, something the Indian government wants to improve upon,” said a general insurance executive.

The reinsurance regulations on order of