IFSCA has issued revised Frequently Asked Questions (FAQs) on IFSC Insurance Intermediary Offices (IIIOs) on January 10, 2024. The FAQs clarifies the following:
Registration and Operation Guidelines for IIIOs: Entities looking to register as IIIOs must adhere to the IFSCA (Insurance Intermediary) Regulations, 2021, and follow the IFSCA (Operations of International Financial Services Centers Insurance Intermediary Offices) Guidelines. These comprehensive regulations and guidelines detail the process for registration and operation of insurance intermediaries in an IFSC.
Objectives of These Regulations: The primary objective of these regulations is to streamline the registration and operation of insurance intermediaries under the IFSCA’s oversight. This ensures a structured and regulated environment for entities operating in IFSCs.
Eligibility for IIIO Registration: Entities eligible for IIIO registration include those registered with the Insurance Regulatory and Development Authority of India (IRDAI), foreign insurance intermediaries with home country regulatory approval, Indian companies under the Companies Act, 2013, and bodies corporate incorporated outside India.
Modes of Establishing Presence in IFSCs: Entities can establish their presence in IFSCs either in an incorporated form or as an unincorporated branch office, each with specific eligibility criteria and requirements.
Eligibility Conditions for IIIO Registration: The eligibility conditions vary based on the form of the entity and its existing registrations. This includes holding valid certifications, experience in the insurance intermediary sector, and compliance with Financial Action Task Force (FATF) regulations, among others.
Key Roles Defined: The framework also defines various roles such as Authorized Verifier, Broker Qualified Person, and Principal Officer, each with specific responsibilities and requirements in the insurance intermediation process.
Categories of Insurance Intermediaries: Under the IIIO regulations, entities can apply for registration in categories like insurance distributors (including Composite Broker, Corporate Agent, etc.), and insurance claim service providers (including Surveyor and Loss Assessor, Third Party Administrator, etc.).
Legal Forms for Establishing an IIIO: Entities can establish an IIIO in various legal forms, including companies, cooperative societies, limited liability partnerships, and others, as specified by the Authority.
Registration Validity and Refusal: A certificate of registration for an IIIO is valid for three years, subject to revocation or cancellation. The Authority also reserves the right to refuse registration, provided the applicant is given a chance to rectify deficiencies and make written submissions.
