Insurance & Reinsurance Business Opportunities in GIFT City

IFSCA Official is rapidly emerging as a premier global financial hub, offering a myriad of opportunities for the insurance sector. Designed to foster innovation and drive economic growth, the IFSCA provides a conducive environment for both Indian and foreign insurers and reinsurers. With a broad spectrum of eligible entities, flexible permissible activities, and significant tax incentives, IFSCA is attracting a diverse range of insurance businesses looking to expand their operations. This comprehensive guide delves into the key aspects of establishing and operating an insurance business within IFSCA, covering everything from eligibility criteria and capital requirements to fee structures and tax benefits. Explore how IFSCA can serve as a strategic platform for your insurance endeavors, ensuring robust growth and sustainability in the dynamic global market.

Eligible Companies

The IFSCA welcomes a wide range of companies, including:

• Indian & Foreign Insurers

• Indian & Foreign Reinsurers

• Societies of Lloyd's on behalf of Members of Lloyd's

• Public companies or wholly owned subsidiaries of insurers or reinsurers

• Insurance co-operative societies

• Bodies corporate incorporated under the law of any country outside India

• Managing General Agents with valid binding agreements with foreign insurers or reinsurers

Permissible Activities

Direct Insurers (General Insurance):

• Cover risks of units in IFSC.

• Cover risks situated in SEZs across India.

• Cover risks from outside India (subject to local laws).

• Provide coverage for Indian interests/risk abroad, including properties and assets of WOS/JVs of Indian headquartered companies.

• Offer insurance for properties situated in India (subject to Section 2CB of the Insurance Act, 1938).

• Provide insurance related to offshore risks for exporters and importers.

Direct Insurers (Life Insurance):

• Offer risk coverage for NRIs and PIOs based in foreign jurisdictions.

• Cater to various life insurance and investment products for foreign nationals.

Reinsurers:

• Provide reinsurance support to IFSC Insurance Offices (cedants) in IFSC.

• Offer retrocession support to IFSC Insurance Offices (reinsurers) in IFSC.

• Provide reinsurance support to cedants (direct insurers) based in India (subject to order of preference).

• Offer retrocession support to Indian reinsurers and foreign reinsurance branches (FRBs) based in India.

• Provide reinsurance and retrocession support to cedants/reinsurers based outside India.

• IIOs are placed in Category-2 in the Order of Preference (OoP) by the IRDAI subject to investment conditions.

Capital Requirements

Equity Capital for Incorporated Insurers:

• Direct Insurer: INR 100 Cr. ($12.20 Mn)

• Reinsurer: INR 200 Cr. ($24.40 Mn)

Equity capital must be maintained within IFSC.

Assigned Capital for Branch Offices:

• $1.5 Mn (may be maintained at the parent entity).

Net Owned Funds for Reinsurance Business by Branch Offices:

• INR 1000 Cr. ($122 Mn).

Solvency Requirements

For Incorporated IIOs:

• Present regime: Factor-based solvency.

• Future regime: Risk-based supervisory framework (RBSF).

Maintenance of Required Solvency:

• Incorporated form: Must maintain within IFSC.

• Branch office: May maintain at the home country as per home country regulatory requirements.

Fee Structure

• Application Fee: $1000

• Registration Fee: $5000

• Recurring Annual Fee: $11500 or 1/20th of 1% of gross premium written by IIO, whichever is higher.

Tax Benefits

• 100% tax exemption on business profits for 10 years out of the first 15 years of operation.

• Reduced Minimum Alternate Tax (MAT) rate of 9% for IFSC units.

For more details, visit the link.

#IFSCA #InsuranceBusiness #GlobalInsurance #Reinsurance #FinancialServices #SEZ #NRIs #InvestmentProducts #IndianCompanies #InternationalInsurance #RiskManagement #CapitalRequirements #Solvency #TaxBenefits #FinancialHub #InsuranceRegulations #InvestmentOpportunity #InsuranceMarket #GlobalBusiness #EconomicGrowth #FinancialStability #InsuranceCoverage #BusinessGrowth #InsuranceSolutions #RiskCoverage #InternationalMarket #FinancialInstitutions #IFSCUnits #EconomicDevelopment #InsuranceSector #FinancialBenefits #RegulatoryFramework #InvestmentClimate #FinancialEcosystem #InsurancePolicies #GlobalEconomy #TaxExemption #BusinessOpportunities #FinancialInclusion #InsuranceCooperative #CorporateInsurance #FinancialStrategy #InsuranceProviders #BranchOffices #EquityCapital #IndianEconomy #GlobalRisk #CorporateGrowth

Disclaimer: This post is for informational purposes only and does not constitute professional advice. While efforts are made to ensure accuracy, we do not guarantee the completeness or reliability of the information provided. Any reliance is at your own risk.Consult professionals for specific advice.