The India International Financial Services Centres Authority (IFSCA) has received the report of its Working Group on Alternate Risk Transfer (ART) arrangements, which assessed the feasibility of issuing insurance-linked securities (ILS), particularly catastrophe bonds, from GIFT IFSC. Chaired by G. Srinivasan and comprising industry experts, the Working Group reviewed regulatory and institutional approaches in peer jurisdictions including Bermuda, Singapore and Hong Kong, and considered how ART solutions are offered in India and internationally. Its recommendations include examining the setting up of a Special Purpose Insurer by a cedant or (re)insurer under the existing framework, recognising acceptance of risk under an ART contract as enabled in IFSCA and Insurance Regulatory and Development Authority of India regulations, establishing an issuance framework for ILS to collateralise acquired risk, restricting offers or sales of ILS to specified “Qualified Investors”, and specifying periodic disclosures and reporting formats. IFSCA has published the Working Group’s report on its website.
India International Financial Services Centres Authority 2025-07-30
India International Financial Services Centres Authority receives working group report on alternate risk transfer and catastrophe bond issuance in GIFT IFSC
The India International Financial Services Centres Authority (IFSCA) received a report from its Working Group on Alternate Risk Transfer, assessing the feasibility of issuing insurance-linked securities (ILS) like catastrophe bonds from GIFT IFSC. Recommendations include setting up a Special Purpose Insurer, establishing an issuance framework for ILS, and restricting sales to "Qualified Investors." The report is available on the IFSCA website.