The Insurance Regulatory and Development Authority of India (IRDAI) board will be meeting today to discuss giving second level approval or R2 to foreign insurance companies, which will pave way for them to start operations in India.
R2 licence is likely to be awarded to re-insurers like Swiss Re, Munich Re, Hannover Re, SCOR and Gen Re. ITI Reinsurance, India’s first private re-insurance company, is also likely to get R2 clearance in the meeting.
Once R2 is allotted, the companies will get the final approval in the next two weeks. As per the rules, these companies will have to get the minimum assigned capital of Rs 100 crore for the reinsurance branches.
