Irdai allows applicants to set up insurance office in SEZ

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The Insurance Regulatory and Development Authority of India (Irdai) has brought out the Irdai International Financial Service Centre Guidelines, 2015.

According to these guidelines, an applicant can set up an IFSC Insurance Office (IIO) in the Special Economic Zone (SEZ) to carry on reinsurance business.

The regulator said these insurers or reinsurers can accept reinsurance business of all classes of business within the SEZ and from outside the country. They can also accept re-insurance business from the insurers operating in the DTA in accordance with the Irdai regulations on reinsurance.

Here, the IIO may retrocede upto 90 per cent of its reinsurance business. The surplus available after such retrocession arrangements shall be held in the form of government securities issued or in deposits with scheduled banks.

An applicant being an Indian insurer may (except a statutory body) also establish an IIO to transact specified Direct Insurance Business within the SEZ. However, the same IIO granted Certificate of Registration may also transact specified Direct Insurance Business.