Section 3(5) in The Insurance Regulatory And Development Authority (Life Insurance-Reinsurance) Regulations, 2000
(5)The reinsurer, chosen by the insurer, shall enjoy a credit rating of a minimum of BBB of Standard and Poor or equivalent rating of any international rating agency:Provided that placement of business by the insurer with any other reinsurer shall be with the prior approval of the Authority:Provided further that no programme of reinsurance shall be on original premium basis unless the Authority approves such programme:Provided further that no life insurer shall have reinsurance treaty arrangement with its promoter company or its associate/group company, except on terms which are commercially competitive in the market and with the prior approval of the Authority, which shall be final and binding.
