The Insurance Regulatory and Development Authority of India (IRDA) has issued an advisory to non-life insurance companies asking them to carry out proper due diligence when they enter into reinsurance contracts through brokers. Mint tells you why.
What prompted IRDA to issue an advisory?
An insurance firm that employed the services of a broker to reinsure its business through overseas reinsurers recently realized that the broker hadn’t placed the business with the reinsurance companies, according to some insurers and brokers.