After submitting the proposal, IFSCA will issue a consultation paper, seek industry feedback, and subsequently notify regulations on the matter. The entire process is expected to be completed within a couple of months.
Speaking at the 25th Global Conference of Actuaries (GCA), Rajaraman said, “The expert committee suggested that we develop alternative risk transfer instruments such as catastrophe bonds. For this, certain structures like special purpose vehicles (SPVs) will be required to manage the issuance through to disposal. This may require regulatory or legislative amendments. We are therefore in the process of sending a proposal to GoI seeking flexibility to set up SPVs.”
The IFSCA committee recommended developing insurance-linked securities, with a focus on instruments such as catastrophe bonds, to strengthen the risk-transfer framework. Traditionally, the insurance industry transfers risk to reinsurers to ensure sustainability. However, other institutional investors, including private equity firms, are looking to diversify their portfolios by subscribing to instruments such as catastrophe bonds.
“If we can broaden participation in risk-sharing, the insurance industry becomes more stable and sustainable, especially during adverse events. From this perspective, the Indian domestic market needs wider risk-sharing mechanisms, not just those limited to reinsurance,” Rajaraman said.
He added that given long-term tax predictability at Gujarat International Finance Tec-City (GIFT City), more global reinsurers are likely to set up operations under IFSCA. Several global players currently write Indian business on a cross-border basis; however, a physical presence in GIFT City offers operational and tax efficiencies.
Rajaraman also pointed to the growing importance of actuarial roles across insurance, pensions, and risk management, particularly as technology reshapes the sector. “Actuarial skills now require much more than technical expertise. Key priorities include communication, leadership, and the ability to influence executive decision-making. Actuaries must learn to translate complex models into narratives that leaders will buy. Future risks do not fit neatly into categories,” he said.
Separately, Department of Financial Services Secretary M Nagaraju underscored the role of actuaries in strengthening risk management, expanding insurance coverage, addressing climate- and artificial intelligence-related risks, and building a resilient financial system to shore up India’s goal of becoming a developed economy.
“The growing demand for actuarial expertise reflects expanding opportunities across financial services, beyond insurance and pensions, into investment management and emerging insurtech ecosystems. Going forward, collaboration among global actuarial leaders, policymakers, and industry stakeholders will be essential to building resilient financial systems capable of addressing both local and global challenges,” Nagaraju said.
 "K Rajaraman, chairman of the IFSCA")