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

Meridian Re, a reinsurer headquartered abroad, wants to underwrite reinsurance of risks originating in India and abroad from GIFT IFSC without forming a separate Indian-incorporated company. Under the IFSCA (Registration and Operations of Insurance Business) framework, which route is available to it for carrying on reinsurance business?

The foreign reinsurer can set up an IFSC Insurance Office, essentially a branch, registered with IFSCA. This lets it underwrite reinsurance from GIFT IFSC without forming a separate Indian company. Brokers and TPAs are intermediaries that cannot underwrite risk, so they cannot serve this purpose.

  1. ASet up an IFSC Insurance Office (IIO) as a branch of the foreign reinsurer, registered with IFSCACorrect
  2. BOperate only through a registered Indian insurance broker
  3. CObtain registration solely from IRDAI as a domestic reinsurer
  4. DRegister as a third-party administrator in the IFSC

Explanation

IFSCA registers insurers and reinsurers in IFSC either as IFSC Insurance Offices (branches of insurers, including foreign ones) or as separately incorporated entities. A broker or TPA cannot underwrite risk, and the registration is with IFSCA, not as a domestic IRDAI reinsurer.

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