The International Financial Services Centres Authority (IFSCA) on May 30, 2024, issued Frequently Asked Questions (FAQs) on IFSC Insurance Office.
The following has been stated: -
•The undertaking of insurance or reinsurance [(re)insurance] business in an International Financial Services Centre (IFSC) is subject to the provisions of the International Financial Services Centres Authority Act, 2019 and the Insurance Act, 1938. In the exercise of the powers conferred by these Acts, the International Financial Services Centers Authority (“IFSCA” or “Authority”) has developed a regulatory framework, including regulations, circulars, and guidelines that enable entities to undertake the business of (re)insurance from IFSCs after registering themselves as an International Financial Service Centre Insurance Office (IIO) with the Authority.
•As per clause (k) of sub-regulation (1) of Regulation 3 of the IIO Regulations, an International Financial Service Centre Insurance Office, or IIO in short, is a financial institution under clause (c) of sub-section (1) of Section 3 of the IFSCA Act that is registered by the Authority to undertake (re)insurance business as may be permitted by the IFSCA under the relevant regulatory framework.
•These regulations aim to put in place the process of registration and operations of insurers and reinsurers in an IFSC under the regulatory purview of the IFSCA Act.
•The accompanying guidelines to the regulations are issued to deal with more granular details of day-to-day operational matters and other compliance aspects like reporting formats and periodicity, fee structure, etc.
The detailed FAQs are given in the document below.
