Draft IFSCA (Registration of Insurance Business) Regulations, 2021

The International Financial Services Centres Authority through press release dated 30 July, 2021 has published the consultation paper and Draft IFSCA (Registration of Insurance Business) Regulations, 2021 to establish a regulatory framework for the insurers and reinsurers in IFSC by adopting international best practices. The proposed IFSCA (Registration of Insurance Business) Regulations, 2021 specifies that:

1. An IFSC Insurance Office can be set up in IFSC by Indian / Foreign insurers or re-insurers including:
   (i) a Public Company,
   (ii) a Wholly Owned Subsidiary of an insurer or a re-insurer,
   (iii) insurance co-operative society; or
   (iv) a body corporate incorporated under the law of any country outside India.
2. An IIO can be permitted to transact Life Insurance Business or General Insurance Business or Health Insurance Business or Reinsurance Business within the IFSC, from other SEZs and also from outside India;
3. An IIO registered to transact direct insurance business may transact such business from mainland India subject to extant provisions the Insurance Act, 1938;
4. An IIO may accept re-insurance business from the cedents based in an IFSC in relation to risk emanating from other SEZs, from outside India and also from mainland India in accordance with extant regulatory provisions;

General public and stakeholders are requested to forward their comments / suggestions through e-mail.