TaxTMI 
TaxTMI 
International Financial Services Centres Authority (Assets, Liabilities, and Solvency Margin of General, Health and Re-insurance business) Regulations, 2023
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.... They shall come into force on the date of their publication in the Official Gazette. CHAPTER - I INTRODUCTION 2. Applicability These regulations shall be applicable to International Financial Service Centre Insurance Offices (IIOs) undertaking general, health, or re-insurance business. Provided that for an IIO set up in an unincorporated form, solvency margin and related requirements under these regulations shall not be applicable and such IIO shall comply with related requirement as stipulated under sub-regulation (4) of regulation 17 of the IFSCA (Registration of Insurance Business) Regulations, 2021 Provided however that the reporting formats specified under these regulations shall continue to be applicable for such IIOs. 3. Objective - These regulations aim to specify the requirements related to capital and solvency for undertaking general, health, or re-insurance business by IIOs. 4. Definitions (1) In these regulations, unless the context otherwise requires- (a) 'Act' means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) 'allocated loss adjustment expenses' mean the expenses which are di....
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....the unexpired portion of the risks on the policies; (n) 'unexpired risk reserves' means the reserves in respect of the liabilities for unexpired risks and determined as the aggregate of unearned premium reserve and premium deficiency reserve. (2) Words and expressions used and not defined in these regulations but defined in the Act or Acts mentioned in the First Schedule to the Act or any rules or regulations made thereunder, shall have the same meanings respectively assigned to them in those Acts, rules or regulations or any statutory modification or re-enactment thereto, as the case may be. CHAPTER - II REPORTING REQUIREMENTS 5. (1) An IIO shall prepare and submit to the Authority the following statements with such periodicity as may be specified: (a) A statement of admissible assets in FORM ALSM-GI-A, as specified under Schedule- I. (b) A statement of the amount of liabilities in FORM ALSM-GI-L, as specified under Schedule- II. (c) A statement of solvency margin in FORM ALSM-GI-SM, as specified under Schedule- III. (2) An IIO shall submit - (a) Annual Actuarial Report prepared by the Appointed Actuary to the Autho....
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....tions, shall comply with additional requirements stipulated in these regulations, if any, within a period of six (6) months from the commencement of these regulations or within such extended time as may be specified by the Authority. SCHEDULE- I (refer clause (a) of sub-regulation (1) of regulation 5) 1. VALUATION OF ASSETS (1) The following assets shall be placed with value zero: (a) Movable and Immovable property excluding financial instrument and any other asset as may be specified by the Authority; (b) Agents' and Intermediaries' balances and outstanding premiums to be payable by policyholders from outside India, to the extent they are not realisable; (c) Sundry debts, to the extent they are not realizable; (d) Advances and receivables of an unrealizable character; (e) Furniture, fixtures, dead stock and stationery; (f) Deferred expenses; (g) Debit balance of Profit and loss appropriation account and any fictitious assets other than pre- Paid-expenses; (h) Co-insurer's balances outstanding for more than ninety days; (i) Re-insurer's balances outstanding for more than 180 days; ....
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....es of assets in accordance with Clause 1 hereinabove. # 'BS' indicates 'Balance Sheet' We certify that the statement has been prepared in accordance with Schedule- I of the International Financial Services Centres Authority (Assets, Liabilities, and Solvency Margin of General, Health and Re-insurance business) Regulations, 2023. Name and Signature of Appointed Actuary Name and Signature of Statutory Auditor Name and Signature of Chief Executive Officer Place Date SCHEDULE- II (refer clause (b) of sub-regulation (1) of regulation 5) DETERMINATION OF AMOUNT OF LIABILITIES 1. Determination of Technical Reserves (1) The technical reserves shall be determined on the Valuation Date separately for each line of business. The representation of reserves for each line of businesses shall be as specified by the Authority. (2) The technical reserves for each line of business shall be determined as the aggregate of Premium Reserves as mentioned in clause 2 herein and Claims Reserves as mentioned in clause 3 herein. 2. Premium Reserves (1) Unearned Premium Reserve (UPR): UPR will be estimated as per the extant....
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.... of the Insurance Act, 1938. FORM ALSM-GI-L STATEMENT OF LIABILITIES As on 31st March 20XX Name of IIO: Registration Number: ll amounts in USD mn) Reserve Gross Reserve Net Reserve Unearned Premium Reserve (UPR) .... (a) Premium Deficiency Reserve (PDR)....(b) Unexpired Risk Reserve (URR)....(c)=(a) +(b) Outstanding Claim Reserve (other than IBNR reserve)...(d) IBNR Reserve.... (e) Total Technical Reserves (f)=(c)+(d)+(e) Note: The statement shall show the value of the above-mentioned categories of liabilities in accordance with Clause 1 to 4 hereinabove. Certifications (1) Certification from Statutory Auditor: I certify that the above statement represents the liabilities of the insurer which have been determined in the manner prescribed in the International Financial Services Centres Authority (Assets, Liabilities, and Solvency Margin of General, Health and Re-insurance business) Regulations, 2023, and amounts of such liabilities are fair and reasonable. I further certify that the OCR (that are estimated us....
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.... STATEMENT OF SOLVENCY MARGIN 1. Interpretation: In this Schedule, (1) 'Available Solvency Margin (ASM)' means the excess of value of assets (as furnished in Form ALSM-GI- A) over the value of liabilities (as furnished in Form ALSM-GI-L) with further adjustments as shown in Table IB of Form ALSM-GI-SM. (2) 'Solvency Ratio' means the ratio of Available Solvency Margin to Required Solvency Margin as specified in Table IB. (3) 'Control level of Solvency' refers to the specified level of solvency margin to be maintained by the IIO in accordance with sub-section (3) of Section 64VA of the Insurance Act, 1938, on the breach of which the Authority shall act in accordance with sub- section (4) of section 64VA of the Insurance Act, 1938, without prejudice to taking any other remedial measures as deemed fit. The control level of solvency is hereby specified as a minimum solvency ratio of 150%. FORM ALSM-GI-SM STATEMENT OF SOLVENCY MARGIN As on 31st March 20XX Name of IIO: Registration Number: TABLE IA: REQUIRED SOLVENCY MARGIN BASED ON NET PREMIUM AND NET INCURRED CLAIMS (All amounts in USD mn) Item No. Line of Business Gross Prem....