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

Kaveri Re Ltd plans to operate in GIFT IFSC only as a reinsurer, accepting risks ceded by insurers located in India and abroad. Under the IFSCA (Registration of Insurance Business) Regulations, 2021, in which category of registered insurance entity would it fall?

Kaveri Re would be registered as an IFSC Insurance Office carrying on reinsurance business. The Regulations permit such an office to accept risk, including reinsurance. Brokers, intermediaries and third-party administrators merely place or service business and do not bear insurance risk themselves.

  1. AInsurance intermediary or insurance intermediary office
  2. BInternational Financial Services Centre Insurance Office carrying on reinsurance businessCorrect
  3. CInsurance broker acting for the cedants
  4. DThird-party administrator

Explanation

The Regulations allow an IFSC Insurance Office to carry on insurance business, including reinsurance. Intermediaries such as brokers and TPAs only service or place business and do not accept risk, so they are wrong for a risk-bearing reinsurer.

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