Document background
The Standard Reinsurance Agreement is a fundamental document in the Indian insurance industry, used when a primary insurer (cedent) wishes to transfer a portion of its underwriting risk to a reinsurer. This agreement type is essential for risk management and capital efficiency in the insurance sector, while ensuring compliance with Indian regulatory requirements, particularly those set by the Insurance Regulatory and Development Authority of India (IRDAI). The document is structured to address all aspects of the reinsurance relationship, including risk transfer mechanisms, premium payments, claims handling procedures, and reporting requirements. It must incorporate specific Indian regulatory provisions such as order of preference rules for reinsurance placements and mandatory retention requirements. The agreement serves as the primary contract governing the business relationship between the cedent and reinsurer, providing clarity on rights, obligations, and operational procedures while ensuring alignment with Indian insurance laws and regulations.
