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CS Professional · IFSCA - Regulations, Listing and Compliances · Insurance and Reinsurance

Kaveri Re, a registered IFSC reinsurer, is asked by a Singapore insurer to take a share of a property risk located in Singapore. How is this transaction best characterised?

This is permitted cross-border reinsurance. IFSC reinsurers are intended to accept offshore and global risks from overseas insurers, so reinsuring a Singapore property risk is a core activity. There is no rule limiting them to risks located inside the IFSC.

  1. ACross-border reinsurance business that an IFSC reinsurer is positioned to write, as the IFSC is meant to serve offshore and global risksCorrect
  2. BProhibited, because an IFSC reinsurer may only reinsure risks located in the IFSC
  3. CPermitted only if the Singapore insurer first registers in India
  4. DPermitted only as direct insurance, not reinsurance

Explanation

The IFSC is designed as an offshore-style hub dealing in foreign currency with non-residents and global risks. Accepting reinsurance of a foreign insurer's overseas risk is a core permitted activity. The claim that only IFSC-located risks can be reinsured is wrong.

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