When using the 32V input, the peak inrush current can be as high as 1.1A. The inductor should not saturate when the regulator is starting up. If it saturates, it acts as just a very small resistance and could damage the circuit. Please note that the inductance of the inductor should not drop at 1.1A.
You can also refer to Switching Regulator section of the TRM at www.cypress.com/?rID=35366 for more information on the built-in switching regulator for PowerPSoC devices.