On October 18, 2021, the International Financial Services Centres Authority (IFSCA) has issued the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021.
Objective: The objective is to put in place the process of registration and operations of insurer and Reinsurer in an International Financial Services Centre under regulatory purview of The International Financial Services Centres Authority Act, 2019.
- Registration: No person shall commence the business of insurance or re-insurance in an IFSC without obtaining registration from the Authority in accordance with these Regulations.
- Eligibility Conditions for registration:
- An Indian insurer or re–insurer, as the case may be, desirous of setting up a place of business in an unincorporated form in an IFSC, shall meet the requirements mentioned in the Regulations.
- A foreign insurer or foreign re–insurer or MGA or Lloyd’s, as the case may be, desirous of setting up branch in an unincorporated form in an IFSC, shall meet the requirements as mentioned in the Regulations.
- Branch Office of foreign insurer’ or ‘Lloyd’s India’ registered by the IRDAI and desirous of setting up an office in an unincorporated form in an IFSC, shall meet the requirements as mentioned in the Regulations.
- A public company or a wholly owned subsidiary of an insurer or a re–insurer, desirous of setting up an IIO in an IFSC, shall be a company limited by shares, which is formed and registered under the Companies Act, 2013;
- An insurance co–operative society desirous of setting up an IIO in an IFSC shall be a co–operative society registered under the Co–operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State relating to co–operative societies or under the Multi–State Cooperative Societies Act, 1984.
- A Body corporate incorporated under the law of any country outside India, not being of the nature of a private company, desirous of setting up its place of business in an IFSC shall meet the requirements as mentioned in the Regulations.
- The Authority, before granting registration may satisfy itself that the Applicant, its Promoters, Principal Officer, Directors, Partners, Designated Partners or any other Key Managerial Personnel (KMPs) are fit and proper persons;
- The Applicant entity and its promoters, partners or controlling shareholders shall be from a FATF compliant jurisdiction and comply with international standards set by the Financial Action Task Force to combat money laundering and terrorist financing.
- Permissible Activities: An IIO registered with the Authority may carry any of the following class of businesses as may be permitted by the Authority subject to such conditions as may be specified:-
(a) Life Insurance Business
(b) General Insurance Business
(c) Health Insurance Business
(d) Re-insurance Business
- An IIO shall conduct its business in any freely convertible foreign currencies other than INR, with such persons, whether resident in India or otherwise, as may be permitted by the Authority.
- An IIO shall not engage itself in any business other than for which the registration has been granted by the Authority.
- An IIO registered to transact direct insurance business may be permitted to do so within the IFSC, from other SEZs and also from outside India