The International Financial Services Centre Authority (IFSCA) on February 26, 2025, issued a draft Consultation Paper on Securitization requirements by overseas insurers or re-insurers for providing insurance covers to entities regulated by the IFSCA.
The following has been stated: -
•The IFSCA is seeking public comments on its draft circular regarding securitization requirements for overseas insurers providing coverage to entities regulated by the IFSCA. The circular aims to balance flexibility with financial stability by setting requirements like Irrevocable Letters of Credit or Bank Fixed Deposits for overseas insurers.
•The provisions apply to both new and existing insurance agreements with REs, ensuring safeguards for liabilities. Comments are invited by March 19, 2025.
The detailed circular is given in the document below.
