Consultation Paper on Proposed IFSCA (Assets_ Liabilities and Solvency Margin) Regulation

IFSCA (Authority) vide its Press Release dated December 29, 2022 has sought comments / suggestions from general public and stakeholders on consultation paper on proposed IFSCA (Assets, Liabilities, and Solvency Margin) Regulations, 2022 (“Proposed Regulations”).

Objective: These Proposed Regulations aim to define the capital and solvency requirements necessary to transact insurance Business by the IIO. Part II of the proposed regulation deals with the requirement for General Insurance, health insurance, composite of general and health insurance or Re-insurance Business

The key provisions mentioned under Part II of the Proposed Regulations are as follows:

• The provisions of this regulations related to capital requirements would be applicable to:
• An incorporated IIO
• An unincorporated IIO having a Sovereign Credit Rating (SCR) recognized by the International Association of Insurance Supervisors of the home country of SCR-RC 7 or below

In case of an unincorporated IIO having a Sovereign Credit Rating (SCR) recognized by the International Association of Insurance Supervisors of the home country of SCR-RC 1 to SCR-RC 6 shall be allowed to maintain its capital requirements in accordance with the home country regulations.

• Reporting Requirements:
• All IIOs shall prepare and submit to the Authority the statements with such periodicity as may be specified in the Proposed Regulations.
• Appointed Actuary shall prepare and submit an Annual Actuarial Report to the Authority.
• The IIOs shall furnish such other reports as may be stipulated by the Authority from time to time
• Miscellaneous Provisions:
• The Authority shall have the power to inspect or investigate the affairs of the IIO including calling for any information from the IIO or the parent entity or specify the disclosures to be made, so far as it relates to its activities as an IIO.
• For the purpose of implementation of these regulations and matters incidental thereto, the Authority may specify norms, procedures, processes and manners to be complied by IIOs.
• Proposed Regulations have three Schedules as follows:
• Schedule I provides for valuation of assets and format for statement of admissible assets.
• Schedule II provides for determination of amount of liabilities and statement of admissible liabilities.
• Schedule III provides for determination of solvency margin

Source category: IFSC Insurance Office

Attachments

• /2022/138_CONSUL~1.PDF