The International Financial Services Centres Authority (IFSCA) has released a new Consultation Paper proposing amendments to the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021—commonly known as the IIO Regulations. The changes focus specifically on the definition and eligibility criteria of Service Companies of Lloyd’s IFSC, and aim to modernize and expand the operational structure available to global insurance players in India’s International Financial Services Centre at GIFT City.
This move comes in response to a recent representation from Lloyd’s London, which requested broader flexibility in who may establish and operate a Lloyd’s Service Company within the IFSC framework. Currently, the definition restricts Service Companies to entities promoted only by Managing Agents of Lloyd’s or by Indian companies meeting specified criteria.
After evaluating Lloyd’s request, IFSCA observed that the existing framework does not allow for Service Companies to be established by Members of a Lloyd’s Syndicate, despite the fact that such members may be body corporates or Indian persons fully capable of participating in the insurance ecosystem. The proposed amendment seeks to close this gap and harmonize IFSC regulations with Lloyd’s global operating model.
To address this, IFSCA has drafted an amendment that broadens the definition of Lloyd’s IFSC Service Companies. The revised definition will include Service Companies promoted by:
- Managing Agents of Lloyd’s,
- Group entities of Managing Agents or Members of Lloyd’s (as permitted by Lloyd’s), and
- Indian companies that satisfy specified eligibility conditions.
This expanded scope is expected to encourage greater participation from a diverse set of Lloyd’s-aligned entities, deepen insurance capacity in the IFSC, and foster a more competitive reinsurance environment. It also signals IFSCA’s commitment to ensuring regulatory clarity and operational flexibility for global insurers operating in GIFT City.
The proposed amendments are published on the IFSCA website under the Public Consultation section. Stakeholders—including insurers, reinsurers, corporate groups, financial entities, and policy experts—are invited to submit comments and suggestions. Feedback can be emailed to the Insurance Department of IFSCA, with copies to designated officials, no later than 29 November 2025. Comments must be submitted only in MS Word or MS Excel format, using the template provided in the consultation paper.
Once finalized, the amendments will be formally notified as the IFSCA (Registration of Insurance Business) (Amendment) Regulations, 2025, becoming effective upon publication in the Official Gazette.
This regulatory development marks another step in IFSCA’s efforts to enhance India’s global competitiveness in insurance and reinsurance services. By expanding eligibility for establishing Lloyd’s Service Companies, the Authority aims to strengthen the IFSC ecosystem, attract more specialized insurance expertise, and align GIFT City with international standards.
Stakeholders are strongly encouraged to participate in the consultation process and help shape the evolving landscape of India’s international insurance market.