The insurance regulator has cleared the way for setting up of International Financial Service Centre Insurance Offices (IIOs). With this, the Insurance Regulatory and Development Authority of India (IRDAI) has put in place the process of registration and operations of insurers, re-insurers in IFSC Special Economic Zones in alignment with the objectives of IFSC-SEZ.

The insurers and re-insurers from India and abroad are eligible to apply for registration to set up IIOs subjected to certain norms. As per the guidelines, no person or entity shall commence or undertake insurance or reinsurance business from an IFSC without obtaining prior registration as an IIO from the Authority.

“The sole object of the IIO, on being registered with the Authority, shall be to exclusively carry on insurance or reinsurance business from an IFSC. An IIO shall not engage itself in any business other than those permitted by the Authority,” the regulator said.

The registered IIO may be permitted to transact direct insurance business within the IFSC, from other SEZs and from outside India.

In case of re-insurance business, the IIO may accept reinsurance business from within the IFSC, from other SEZs and from outside India. It may also accept reinsurance business from the insurers operating in the DTA in accordance with the order of preference for cession, as per the existing norms.

SEGMENTS

The IIOs may be registered for carrying out business in various classes/sub-classes of Life insurance, general insurance, health insurance and reinsurance business. The applicant should demonstrate a minimum assigned capital of Rs 10 crore. In case the applicant is Foreign Direct Insurer, then such applicant Company shall possess paid-up equity capital as per existing provisions.

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