Investment exposure limits require insurers to diversify assets, restrict debt-fund exposure, and apply rating, concentration, and ULIP norms. Regulation 9 sets investment-asset exposure limits for an International Financial Service Centre Insurance Office, calculated against total investment ... Summary
Investment exposure limits require insurers to diversify assets, restrict debt-fund exposure, and apply rating, concentration, and ULIP norms.
Regulation 9 sets investment-asset exposure limits for an International Financial Service Centre Insurance Office, calculated against total investment assets. It permits specified exposure to fixed-income assets, other debt and deposits, equities, alternative investment funds, loans, immovable property and infrastructure. Short-term money-market investments may reach 100 per cent for new funds awaiting deployment and maturing-policy payments, but are otherwise limited. Debt mutual fund, MBS and ABS exposure is restricted within total debt investments. Rating criteria, sovereign-rating limits and instrument, entity, industry and group concentration limits apply, while ULIP investments must follow the accepted policyholder investment pattern subject to exposure norms.
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