The International Financial Services Centres Authority (“ IFSCA ”/ “ Authority ”) has issued a Press Release (“ Press Release ”) dated May 11, 2026, approving the draft IFSCA (Managing General Agents) Regulations, 2026 (“herein referred as “ Draft MGA Regulations ”) which were placed before the Authority during the 28th meeting of IFSCA held on April 17, 2026.
The Authority had issued a consultation paper dated March 13, 2026, inviting comments and suggestions from the public on the proposed Draft MGA Regulations. The inputs/comments received pursuant to the public consultation process (“ public comments ”) were suitably considered by the Authority and the modified draft regulations were thereafter placed before the Authority during its 28th meeting held on April 17, 2026, wherein the Draft MGA Regulations were approved.
Key objectives of the Draft MGA Regulations are as follows:
- To provide comprehensive regulatory framework for the registration, regulation and operation of Managing General Agents (“ MGAs ”) operating in the IFSC in India.
- To regulate MGAs possessing delegated underwriting and claims settlement authority from foreign insurers while ensuring transparency, accountability and protection of policyholders’ interests.
- To support orderly growth and development of the insurance ecosystem in the IFSC.
Key features of the draft MGA Regulations are as follows:
1. Eligibility Criteria –
- The approved framework permits establishment of MGAs in the IFSC either in incorporated or branch form, subject to prescribed eligibility conditions relating to home regulatory approvals, FATF compliant jurisdiction requirements and Double Taxation Avoidance Agreement (“ DTAA ”) arrangements with India.
- The framework prescribes following conditions for foreign insurers entering into binding authority arrangements with MGAs.
- minimum net worth of USD 100 million
- minimum credit rating of ‘A’
2. Scope of Business –
- Registered MGAs shall be permitted to undertake direct insurance business from within IFSC and outside India.
- Direct insurance business from Domestic Tariff Area (“DTA”) India shall be subject to the provisions of Section 2CB of the Insurance Act, 1938.
- Further, business operations are to be conducted only in specified foreign currencies.
3. Capital and Net Worth Requirements –
- The minimum capital requirement of USD 500,000 to be maintained in an IFSC Banking Unit (“IBU”) for all MGAs.
- All investments in MGAs to remain unencumbered and funded through owned funds.
- Further, MGAs are required to maintain net worth of USD 250,000 or 50% of the minimum capital requirement, whichever is higher.
- An MGA in branch from shall be permitted to maintain Net Worth at its parent level.
4. Other Provisions –
The Draft MGA Regulations further prescribes for –
- Binding Authority Agreements (“ BAA ”) between Foreign Insurers and MGAs,
- Insurer-wise Fiduciary Accounts and Premium Segregation
- Duties of foreign insurer(s) to conduct independent annual audit, on-site review etc.
- Financial Security and Deposit Requirements
- Board Approved Policy on comparison and distribution of insurance products
- Code of conduct for MGAs
- Professional Indemnity Insurance requirement
- Maintenance of books of accounts and records
The Authority has further stated that the notification of Regulations will be released in due course on the official website of IFSCA.
A copy of the Press Release and Public Comment is attached herewith for your ready reference.
Source category: IFSC Insurance Office
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