An IIIO may enter into agreements with insurers for online sale of insurance products by linking to insurers' web portals or establishing an insurance self-network platform. Digital-mode insurance solicitation remains subject to conditions specified by the Authority. Sales involving online or offline lead generation and telemarketing completion must follow the specified procedure.

Amalgamation, merger, acquisition and transfer of business by insurance intermediaries require compliance with the regulatory framework and, for an IIIO, prior approval of the Authority. A limited exception applies to a branch office in an IFSC where the transferred business was not transacted by the IIIO. Transfers of all or part of an IIIO's business require approval, and a transferor cannot conduct the transferred business beyond six months. Approval is also required where transfer results in voluntary surrender of registration.

Insurance intermediaries require prior approval for changes to key management personnel, directors, partners or members, name, and corporate or registered office. Resignations of directors, partners or members must be intimated. Insurance Brokers and Corporate Agents must update information on Broker Qualified Persons or Specified Persons and claims under Professional Indemnity Policies. Information, data and documents may also be required in the specified manner and at specified intervals.

Insurance intermediaries must file periodical returns in the manner specified by the Authority, establishing an ongoing regulatory reporting obligation.

Outsourcing by insurance intermediaries is permitted for activities specified by the Authority under Regulation 23 of the International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021.

Insurance intermediary business is subject to a 50 percent single-client remuneration ceiling in each financial year. A client includes an associate, subsidiary or group concern under the same management, and the Authority's determination of common management is final. Compliance certification must accompany audited accounts and may be issued by a practising Chartered Accountant, practising Company Secretary, practising Cost Accountant, or another appropriately qualified person specified by the Authority.

Insurance intermediaries must prepare annual balance sheets, accrual-basis profit and loss accounts, direct-method cash or fund-flow statements, and additional statements specified by the Authority. Audited financial statements, auditor reports, observations and explanations must be submitted within the prescribed period, while audit deficiencies must be rectified and reported. Books and records must be maintained at the IFSC office, retained for the applicable period, and available for inspection. Financial statements must provide insurer-wise income details and disclose payments from group companies, associates and related parties, while audited accounts and balance sheets must disclose all related-party transactions.

Segregation of premium governs funds handled by registered reinsurance brokers and composite brokers under reinsurance contracts. Where permitted by mutual agreement or international market practice, a broker may collect premium for remittance to a reinsurer or receive claims from a reinsurer for onward payment to an insurer. Such collected money must be handled in the manner specified by the Authority.

Insurance intermediaries must maintain a proper internal audit system and internal controls and systems adequate to the size, nature and complexity of their business. The audit and control framework must correspond with the intermediary's operational scale, business characteristics and complexity.

Every insurance intermediary must abide by the Code of Conduct specified in Schedule III. This mandatory conduct requirement applies to intermediary operations and management, making adherence to the Schedule III standards an express obligation for each insurance intermediary. The Code of Conduct is the prescribed standard for operational and management conduct, and compliance is required from every intermediary within this category.

Insurance intermediaries must maintain a Board or equivalent-approved policy governing the solicitation and servicing of insurance policies. The policy must address multiple insurer tie-ups, product types, solicitation modes, grievance-redressal arrangements, reporting requirements, and other requirements relevant to different business segments. The Board or equivalent must review the policy at least once every three years.

Remuneration, reward, fees, and any other form of payment payable by an insurer to an IIIO must be made only in the mode and manner specified by the Authority. The requirement applies regardless of the label assigned to the payment and covers all insurer-funded compensation or rewards to an insurance intermediary.

Beneficial ownership, contribution and control of an IIIO may be changed only through the manner and processes specified by the Authority. The provision places such changes within the Authority's prescribed regulatory procedure.

Every IIIO must purchase and continuously maintain professional indemnity insurance meeting Schedule V requirements throughout the validity of its registration. Newly registered IIIOs may, in appropriate cases, be allowed to obtain the policy within twelve months of registration. An IIIO established in branch form must meet insurance requirements at its head office and obtain an endorsement covering liabilities arising from IFSC branch operations.

Insurance intermediary registration requires applicants to maintain prescribed paid-up capital and net worth. Company capital must be paid-up equity shares, while capital interests and equivalent contributions must remain unpledged and unencumbered. Investments by promoters, shareholders, partners, or members must come from owned funds and cannot be financed through borrowings or loans. An IIIO must immediately restore any net-worth shortfall and report compliance. Half-yearly paid-up capital and net-worth certificates must be submitted from a statutory auditor, specified Indian professionals, or another appropriately qualified person specified by the Authority.

An IIIO must use a name reflecting its registered insurance intermediary activity, subject to an exception for foreign intermediaries establishing an IFSC branch. It must display its registration certificate and prescribed registration particulars in stakeholder communications, and cannot use another name without prior approval. Business must commence within 180 days of certification. An extension may be requested at least 30 days before expiry, but cannot extend beyond 18 months from certification.

Refusal of renewal requires an applicant to cease acting as an insurance intermediary from the effective date specified in the communication to the IIIO. A refused IIIO must continue servicing existing contracts only until their expiry or for a maximum of six months, whichever is earlier, and must arrange for another registered IIIO in the same category to attend to those contracts. The Authority may seek details of those arrangements.

Registration refusal procedure requires communication of application deficiencies and allows the applicant thirty days to rectify them. If the deficiencies are not rectified to the Authority's satisfaction, registration may be refused only after the applicant receives an opportunity to make written submissions on the proposed grounds. Refusal of registration, including refusal to renew a certificate, must be communicated with reasons or grounds for rejection.

Renewal of an IIIO certificate requires submission of the prescribed application and renewal fee at least 90 days before expiry. Applications submitted less than 30 days before expiry but before registration expires attract an additional penalty fee. Renewal may be considered up to 60 days after registration ceases, subject to payment of the additional fee and condonation of delay on satisfactory reasons. An IIIO with an expired certificate pending renewal cannot undertake fresh insurance business and may only service existing policyholders until renewal.

Scope of operations for IIIOs distinguishes permitted insurance activities by registration category and location. Direct insurance brokers may operate from the IFSC, other Indian SEZs and outside India, subject to limits on soliciting business from the Domestic Tariff Area. Composite and reinsurance brokers may also operate in the Domestic Tariff Area. IIIOs may transact only authorised classes of business. Registered TPAs, surveyors and loss assessors have restricted policy-servicing functions, with a specified overseas-treatment exception. All IIIOs must comply with applicable laws and conduct financial transactions in freely convertible foreign currency other than Indian Rupee.