TaxTMI 
TaxTMI 
International Financial Services Centres Authority (Re-insurance) Regulations, 2023
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....IOs) unless otherwise specified. 2. Objectives - To provide framework for oversight and control of inward and outward arrangement of re-insurance business by the International Financial Service Centre Insurance Offices (IIOs). 3. Definitions - (1). In these regulations, unless the context otherwise requires - (a) 'accounting year' shall have the same meaning as assigned to it under clause (ii) of sub-regulation (1) of regulation 4 of the International Financial Services Centres Authority (Preparation and Presentation of Financial Statements of International Financial Service Centre Insurance Offices) Regulations 2022; (b) 'Act' means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (c) 'Alternate Risk Transfer' or 'ART' means non-traditional structured re-insurance solutions tailored to suit specific needs and profile of an IIO, Indian insurer, foreign insurer or foreign re- insurer; (d) 'Authority' or 'IFSCA' means the International Financial Services Centres Authority established under sub-section (1) of Section 4 of the Act; (e) 'board' means the board of directors of an IIO; or the Boar....
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....viii) Crop; (ix) Trade Credit; (x) Oil & Energy; (xi) Liability; (xii) Miscellaneous; (xiii) Life (including health insurance policies issued by Life Insurers); (xiv) Any other segment (under Miscellaneous segment) which contributes more than ten percent of the Gross Written Premium of the Miscellaneous segment; (xv) Any other segment as may be specified by the Authority from time to time. (p) 'International Financial Services Centre Insurance Office' or 'IIO' shall have the same meaning as assigned to it under clause (k) of sub-regulation (1) of regulation 3 of the International Financial Services Centres Authority (Registration of Insurance Business) Regulations 2021; (q) 'Parent Entity' or 'Head Office' shall have the same meaning as assigned to it under clause (q) of sub-regulation (1) of regulation 3 of the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021; (r) 'Re-insurance' shall have the same meaning as assigned to it under sub-section (16B) of section 2 of the Insurance Act, 1938; (s) 're-insurance contract' refe....
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....ources to meet their business obligations; (b) formulate operational policies and procedures for implementing the RSRP; (c) develop clear methodologies for evaluating re-insurance arrangements of the IIOs, including but not limited to - (i) identification of tolerance to risk; (ii) identification of the segment-wise risk retention levels vis-à-vis tolerance to risk with appropriate re-insurance arrangements; (iii) selection of the panel of re-insurers used, including consideration of diversification and credit worthiness of the re-insurers; (iv) management of all possible concentration of risks with respect to a particular industry, geographical region, product type, and/or single insured in the insurer's underwriting books; (v) involvement of re-insurance brokers if any, including their role in structuring the re- insurance arrangements; (vi) the process for monitoring, reviewing and updating the RSRP; (vii) management of credit and liquidity risk; (viii) management of legal risk arising from the re-insurance contract; (d) develop robust internal control systems to ensure that....
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....shall comply with minimum retention requirements as may be specified by the Authority. 7. Placement of re-insurance business: (1) Every IIO, before placing of re-insurance business (cession or retrocession) with the foreign insurers or foreign re-insurers, shall ensure that - (i) such foreign insurer or foreign re-insurer and its promoters, partners or controlling shareholders are not from the jurisdiction identified in the public statement of Financial Action Task Force as: (a) a jurisdiction having a strategic Anti-Money Laundering or Combating the Financing of Terrorism deficiencies to which counter measures apply; or (b) a jurisdiction that has not made sufficient progress in addressing the deficiencies or has not committed to an action plan developed with the Financial Action Task Force to address the deficiencies; (ii) such foreign insurer or foreign re-insurer is duly authorised by its home country regulatory or supervisory authority to transact re-insurance business and engaged in transacting re-insurance business during the immediate past three continuous years; and (iii) the home country of such foreign insurer or f....