The India International Financial Services Centres Authority has approved draft regulations to create a regulatory framework for the registration, regulation and operation of managing general agents in International Financial Services Centres in India. The draft IFSCA Managing General Agents Regulations, 2026 would apply to MGAs that receive delegated authority from foreign insurers to underwrite direct insurance business or settle claims. The draft would allow MGAs to operate in an IFSC either as an incorporated entity or a branch. Branch applicants would need, among other things, home regulator registration and a no objection certificate, while their jurisdiction must have a Double Taxation Avoidance Agreement with India and be Financial Action Task Force compliant. Foreign insurers entering into a binding authority agreement with an MGA would need valid home registration, minimum net worth of USD 100 million and a minimum credit rating of A. Registered MGAs would be permitted to undertake direct insurance business from within the IFSC and outside India, with business from DTA India subject to Section 2CB of the Insurance Act, 1938, and all business conducted only in specified foreign currencies. The proposal sets a minimum capital requirement of USD 500,000 to be held in an IFSC Banking Unit, requires investment in an MGA to come from own unencumbered funds, and sets minimum net worth at USD 250,000 or 50% of minimum capital, whichever is higher, although branch MGAs may maintain net worth at parent level. It also provides for binding authority agreements, insurer-wise fiduciary accounts and premium segregation, annual independent audits and on-site reviews by foreign insurers, financial security and deposit requirements, a board-approved policy on comparison and distribution of insurance products, a code of conduct, professional indemnity insurance, and books and records requirements. The notification will be released in due course on the authority's website.
India International Financial Services Centres Authority 2026-05-11
India International Financial Services Centres Authority approves draft regulations for managing general agents in IFSCs
The India International Financial Services Centres Authority has approved draft IFSCA Managing General Agents Regulations, 2026, establishing a framework for registering, regulating and operating managing general agents (MGAs) in Indian IFSCs. The draft sets eligibility criteria for MGAs and foreign insurers, minimum capital and net worth thresholds, and requirements on binding authority agreements, fiduciary accounts, audits, financial security, governance, conduct and record-keeping. Registered MGAs may undertake direct insurance business within the IFSC and outside India, with business from Double Taxation Avoidance Agreement jurisdictions subject to Section 2CB of the Insurance Act, 1938.