The International Financial Services Centres Authority on April 11, 2023, issued the International Financial Services Centre Authority (Re-insurance) Regulations, 2023.
The following has been stated: -
•To provide a framework for oversight and control of the inward and outward arrangement of re-insurance business by the International Financial Service Centre Insurance Offices (IIOs).
•These regulations shall be applicable to all International Financial Services Centres Insurance Offices (IIOs) unless otherwise specified.
•Every IIO shall develop and document its Re-Insurance Strategy and Re-insurance Programme (RSRP), which shall form an integral part of the IIO’s overall underwriting strategy and risk management philosophy.
•The policies and procedures for selecting and monitoring re-insurance arrangements as well as management responsibilities and controls including re-insurance management systems shall be included in the RSRP.
•Every IIO shall formulate a segment-wise retention policy duly approved by its Board and shall maximize the retention commensurate with its financial strength and quality of risk while ensuring that the re-insurance arrangements are not fronting;
•An IIO shall furnish information related to inward and outward re-insurance arrangements, as the case may be, to the Authority, in such manner, interval, and in such form, as may be specified by the Authority.
This shall come into force on April 11, 2023.
[Notification No. IFSCA/2022-23/GN/REG036]
