The International Financial Services Centres Authority (“ IFSCA ”/“ Authority ”) has issued a consultation paper on draft “IFSCA (Managing General Agents) Regulations, 2026” dated March 13, 2026 (herein referred as “ Draft MGA Regulations ”) to recognise Managing General Agent (“ MGA ”) as a standalone intermediary category possessing delegated underwriting and claims authority. According to the IFSCA, the Draft MGA Regulations are in accordance with the international best practices and provide a robust legal structure for solicitation, specialized underwriting and claims management services.
The primary objectives of the Draft MGA Regulations are as follows:
- To establish a comprehensive framework for the registration and operation of MGAs, which are Insurance intermediaries with delegated authority from the foreign insurer(s) to underwrite direct insurance business and settle claims.
- To define eligibility criteria, capital requirements, and fit and proper standards for entities seeking to get registered as MGAs.
- To supersede joint-registration framework and all provisions relating to MGA previously specified in the Third Schedule of the IFSCA (Registration of Insurance Business) Regulations, 2021.
- General public and stakeholders are requested to forward their comments/suggestions through e-mail to Insurance department at insurance-dept@ifsca.gov.in with a copy to Mr. Bhaskar Khadakbhavi at bhaskar.khadakbhavi@ifsca.gov.in and Mr. Nitin Gupta at g.nitin@ifsca.gov.in by April 02, 2026 in the following format.
Format for providing comments / suggestions
Inputs / Comments suggested by:
| Page No. of Draft Regulation | Reg. No. | Sub-Regulation No. /Para No. | Comments / Suggestions / Suggested modifications | Rationale |
|---|---|---|---|---|
Key highlights of the Draft MGA Regulations are as follows:
1. Applicability
- The Draft MGA Regulations are applicable to the entities that wishes to apply before the IFSCA to get registered as an MGA which is an insurance intermediary under these regulations.
2. Key Definitions
- ‘Applicant’ means –
- a body corporate incorporated outside India, which is registered as an insurance intermediary under these regulations and authorized by foreign insurer(s) pursuant to BAA to manage part of its direct insurance business including solicitation, underwriting risks and/or settling the claims, or
- a company incorporated under the Companies Act, 2013 (Companies Act)
- ‘Binding Authority Agreement’ or ‘BAA’ means a legally enforceable written contract between an MGA and a foreign insurer, under which a foreign insurer authorizes an MGA to act as an agent and to enter into a contract of insurance on its behalf; setting forth the terms, conditions, and limits of the delegated authority to bind insurance risks or settle claims.
- ‘Managing General Agent’ or ‘MGA’ means an MGA which is registered as an insurance intermediary under these regulations and authorized by foreign insurer(s) pursuant to BAA to manage part of its direct insurance business including solicitation, underwriting risks and/or settling the claims.
- ‘MGA Qualified Person’ or ‘MQP’ means an individual who is an employee or director of the MGA engaged in solicitation and procurement of direct insurance business and who have undergone training and passed the examination as specified by the Authority for them.
- ‘Principal Officer’ or ‘PO’ means a resident individual in the International Financial Services Centre (IFSC) who is responsible for the overall operation, professional conduct, and regulatory compliance of the MGA.
- ‘Underwrite and / or Underwriting’ means the authority to accept or reject insurance risk or insurance liability on behalf of the foreign insurer.
3. Registration
- No person shall act as an MGA or hold themselves out as an MGA in the IFSC without obtaining a Certificate of Registration (CoR) from the Authority.
- No person shall act as an MGA and place business with any foreign insurer unless there is in force BAA which sets forth the responsibilities of each party.
- Any person engaging an unregistered MGA for covering the risks in the IFSC shall be liable for regulatory action including but not limited to the penalties as per provisions of the IFSCA Act, 2019 or the Insurance Act, 1938.
4. Eligibility
i. An applicant registered or licensed as MGA outside India and desirous of setting up branch office in an unincorporated form in IFSC shall meet with the following requirements:
- Valid certificate of registration issued by its home country regulatory or supervisory authority, which is not withdrawn, cancelled or suspended,
- Acted as MGA for direct insurance business,
- From a FATF compliant jurisdiction or country.
- Registered or certified in a National Regulatory Environment with whom the Government of India has signed Double Taxation Avoidance Agreement; and
- Obtained ‘No-objection certificate’ from its home country regulatory or supervisory body to establish a branch office in IFSC.
ii. An entity not falling in the above category shall be registered in the IFSC under the Companies Act which may be promoted by a firm or co-operative society or body corporate incorporated under the law of any country outside India, shall have minimum net worth and paid-up equity capital, as prescribed below.
5. Consideration of Application
The Authority while considering an application for MGA shall consider all matters necessary for carrying out functions of MGA, including but not limited to:
- The undertaking to fulfil the Capital and Net worth requirements by the Applicant.
- Applicant possessing requisite Underwriting and/or claims processing competence in terms of PO, responsible for day-to-ay affairs or conduct of MGA and other qualified personnel having necessary qualifications and experience.
- The PO/promoters, directors and KMPs/controlling shareholders are fit and proper in the manner specified by the Authority.
- The applicant has adequate office space, IT systems, and data security protocols within the IFSC to effectively discharge its activities.
- The issue of certificate of registration will be in the interest of policyholders.
- Such additional conditions as may deem fit.
6. Conditions for grant of registration
- Carry out the business as specified in Schedule I of the Draft MGA Regulations.
- Comply with the provisions of the Insurance Act, IFSCA Act, Regulations, Circulars, Guidelines and any other applicable instructions issued from time to time.
- Comply with relevant Know Your Customer (KYC) and Anti-Money laundering (AML) guidelines.
- Hold a valid and subsisting Letter of Approval (LoA) from the Administrator (IFSCA) under the SEZ Act, 2005 at all times.
- Inform immediately to the Authority, if there is any material change in the information already submitted.
- Take adequate steps for redressal of grievances of clients.
- Solicit and procure number of insurance policies commensurate with resources, if applicable.
- Maintain records capturing policy-wise details tagging each policy solicited to the authorised person/s, wherever applicable.
- Do not undertake multi-level marketing for solicitation and procuring insurance business.
- Comply with the Code of Conduct as specified in the Schedule II.
- Maintain such books of accounts as specified in the Draft MGA Regulations.
7. Scope of Operations
- A registered MGA is permitted to perform the activities of direct insurance business within the IFSC and from outside India.
- An MGA shall not solicit direct insurance business from the Domestic Tariff Area (DTA) in India except in accordance with Section 2CB of the Act.
- No MGA can bind reinsurance (retrocessions) on behalf of the insurer.
- No MGA shall be permitted to transact a class of business, which is not permitted in its certificate as issued by the Authority.
- An MGA shall conduct its business in such foreign currencies other than Indian Rupee as may be specified by the Authority.
8. Capital and Net worth Requirements for an MGA incorporated in IFSC
- Minimum paid-up equity capital or assigned capital: USD 5,00,000 (USD Five Lakh only), which is to be held in an IFSC Banking Unit for an MGA incorporated in IFSC.
- Net Worth: USD 250,000 or 50% of the minimum paid-up or assigned capital, whichever is higher, at all times to be maintained by every MGA.
- The shares of applicant company shall at all times be unencumbered.
- The investment in applicant shall be from owned funds of promoters/shareholders and not from any other sources.
- MGA in case of shortfall in net worth, shall immediately restore the same and report compliance within 15 days.
- MGA shall submit the Authority a paid-up capital and net-worth certificate issued by its statutory auditor on half yearly basis.
9. The Binding Authority Agreement (BAA)
- No MGA shall operate or bind risks or settle claims unless a written BAA.
- The BAA shall explicitly define, following:
- Classes of business, territorial limits, and maximum limits of liability per risk.
- Underwriting guidelines and the basis of rates to be charged.
- The underwriting capacity allocated by the insurer.
- Insurer’s right to termination and suspension clauses, including the insurer’s right to suspend authority during the pendency of dispute regarding the cause for termination.
10. Operations and Management
The Draft MGA Regulations under Chapter IV provides for other operational and management guardrails to be adhered by an applicant including fiduciary accounts and premium segregation, internal control and systems and duties of foreign insurers and their operational oversight, including prohibited activities for every MGA, etc.
11. Governance, Conduct and Compliance
Chapter VI of the Draft MGA Regulations prescribes the code of conduct, governance and other compliance requirements to be adhered by the MGA. It further details on subjects such as amalgamation and transfer of business and sale of insurance through Digital Modes.
12. Furthermore, the Draft MGA Regulations outlines such additional functions and requirements to be adhered by MGA as follows:
Schedule-I of the Draft MGA Regulations prescribe the functions and activities to be undertaken by the MGA.
Schedule-II of the Draft MGA Regulations prescribe the Code of Conduct to be followed by the MGA.
Schedule-III of the Draft MGA Regulations prescribe the requirement to maintain Professional Indemnity by the MGA.
Schedule-IV of the Draft MGA Regulations prescribe mandatory provisions of BAA.
A copy of the consultation paper on Draft MGA Regulations is attached herewith for your ready reference.
Source category: IFSC Insurance Office
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