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Insurance

The IRDAI had issued the Insurance Regulatory and Development Authority of India (International Financial Service Centre) Guidelines, 2015 in April 2015 (“Old Guidelines”) to permit the following category of participants to set-up offices in the IFSC.

  • An Indian Insurer

  • An Indian Reinsurer

  • A Foreign Insurer

  • A Foreign Reinsurer

  • Insurance Broker

In order to provide more clarity on business and operating issues, IRDAI has issued the Insurance Regulatory and Development Authority of India [Registration and Operations of International Financial Services Centre Insurance Office (IIO)] Guidelines, 2017 (“New Guidelines”) the same can be downloaded from the LAWS & REGULATIONS – IFSC section of the website.

Eligibility Criterion:

Indian insurer/ reinsurer:

  • An Indian insurer/ reinsurer to be registered with IRDAI

  • An Insurer/ reinsurer to be in continuous operations for preceding five years

Foreign insurer/ reinsurer

  • (Incorporated) Foreign insurer/ reinsurer to be registered or licensed for transacting insurance or reinsurance business in country of incorporation

  • Due authorization by home country authority to set up an IIO in India

  • Continuous operation of foreign applicant for preceding five years

  • Compliance with applicable provisions on assigned capital, paid-up equity capital, solvency margin and net-owned funds

  • Satisfactory track record of compliance in the country of incorporation or other country in which it is functioning

  • Foreign applicant is to be registered or certified in a National Regulatory Environment with whom the government of India has signed a DTAA

  • Minimum credit rating having at least good financial security characteristics in the manner prescribed from internationally renowned credit rating agencies for the last three years

Business Opportunities: (Insurance / Reinsurance Companies & Brokers)

  • Registered IFSC Insurance Office (IIO) / IFSC Insurance Broking office (IIBO) are permitted to transact direct insurance / reinsurance business from:

    • Within the IFSC in GIFT SEZ;

    • All other Special Economic Zones in India;

    • Outside India (Foreign to Foreign, Foreign to India & India to Foreign – Inward & Outward Business)

    • It would also be allowed to undertake Domestic Insurance & Reinsurance business in line with the provisions of IRDA regulations.

  • Registered IIOs / IIBOs would carry out dollar denominated transactions from the IFSC. The branch open in the IFSC would be considered as a foreign branch (non-resident India – as per RBI guidelines)

  • Retrocession up to 90% of reinsurance business permissible

Insurers

General Insurer can do following business from GIFT IFSC:

  • Undertake business of Units in IFSC, Units in SEZs all over India

  • Insure properties of Indian WOS / JV abroad & properties of overseas entities

  • Provide cover to exporters & importers

  • Provide Overseas Travel & Health Insurance to NRIs, PIOs & Foreign residents

  • Can execute all Offshore Business

  • Place Reinsurance business from GIFT IFSC

  • Allowed to issue insurance policy in foreign currency

  • Maintain foreign currency account with IFSC Banking Units located at GIFT IFSC

Reinsurers

Reinsurer can do following business from GIFT IFSC:

  • Undertake reinsurance business of IIOs in IFSC

  • Undertake reinsurance business of all SEZs in India

  • Undertake reinsurance business of foreign and Indian reinsurer in India which is placed outside India

  • Undertake foreign reinsurance business from IIOs

  • Allowed to issue insurance policy in foreign currency

  • Maintain foreign currency account with IFSC Banking Units located at GIFT IFSC

Insurance Brokers

IFSC Insurance Broking office (IIBO) are permitted to transact direct insurance / reinsurance business from GIFT IFSC. In order to facilitate conduct of Insurance/Reinsurance business, Brokers registered with the Authority are permitted to open IFSC Insurance Broking Office (IIBO) in the GIFT IFSC.

Application for Brokers – FORM IRDAI/SEZ/ Application, under the Circular IRDA/NL/CIR/MISC/019/01/2016, dated 28 -01-2016. (Attached)