Reinsurance companies have approached the IRDAI for a separate set of accounting and reporting standards for their sector.

At present, reinsurers in the country, including state-run GIC Re, use the same reporting standards prescribed by the regulator for insurance companies.

“The industry has been in talks with the IRDAI on a separate set of guidelines for reinsurers for reporting, accounting and end-use,” an executive with a foreign reinsurance company told Hindu Business Line.

The discussions followed the IRDAI's introduction last December of rules for foreign reinsurers, to create a more level playing field with GIC Re. While the state-run reinsurer continues to have the first right of refusal, foreign reinsuers can bid for the contracts and win if they quote lower prices. Apart from GIC Re, there are nine foreign reinsurers that operate in the country through branch offices. They include Swiss Re and Allianz Global Corporate & Specialty.

Experts believe a separate set of reporting guidelines are necessary for reinsurers, as their nature of business and cashflows are different from those of insurers.

“The insurer gets the money as soon as the risk is underwritten; the reinsurer gets the money quarterly in an aggregated form,” said Joydeep Roy, partner and leader, Insurance and Allied Businesses, PwC India, adding that accounting standards need to be tailored to reinsurance to help present the true picture of the accrual of risk and premium in the segment.