Comments received on the proposed IFSCA (Managing General Agents) Regulations, 2026

Comments received on the proposed IFSCA (Managing General Agents) Regulations, 2026 The consultation paper on captioned regulations seeking comments/suggestions from the public was issued by IFSCA on March 13, 2026. The following comments / s uggestions were received: Sr. Reg. Sub-Regu No. Comments / Suggestions / Suggested modifications Rationale No. No. /Para No. 1 2 - These regulations establish a comprehensive framework for the MGA shall be allowed to be registered as an reinsurance registration and operation of Managing General Agents intermediary also under the BAA with the foreign reinsurer to (MGAs) which as an insurance/re-insurance intermediary shall carry out the reinsurance activities possess delegated authority from the foreign insurer(s) or re- insurer(s) for underwriting direct insurance or re-insurance business and settlement of claims. 2 3 (1)(d) ‘Binding Authority Agreement’ or ‘BAA’ means a legally MGA shall be allowed to enter into a written contract i.e., BAA enforceable written contract between an MGA and a foreign with foreign reinsurers also to act as an agent and to enter into a insurer or re-insurer, under which a foreign insurer or re-insurer contract of reinsurance on its behalf authorizes an MGA to act as an agent and to enter into a contract of insurance or re-insurance on its behalf; setting forth the terms, conditions, and limits of the delegated authority to bind insurance or re-insurance risks or settle claims. 3 3 (1)(l) ‘Managing General Agent’ or ‘MGA’ means an MGA which is MGA shall be allowed to be registered as an reinsurance registered as an insurance or re-insurance intermediary under intermediary also to carry out the reinsurance activities these regulations and authorized by foreign insurer(s) or re- insurer(s) pursuant to BAA to manage part of its direct insurance or re-insurance business including solicitation, underwriting risks and/or settling the claims. 4 3 (1)(m) ‘MGA Qualified Person’ or ‘MQP’ means an individual who is MQP of MGA registered as an intermediary under a BAA from an employee or director of the MGA engaged in solicitation and foreign reinsurance company and engaged in solicitation and procurement of direct insurance or re-insurance business and procurement of reinsurance business shall undergo training and who have undergone training and passed the examination as pass the reinsurance examination as may be specified by the specified by the Authority for them. authority 5 9 (1) A registered MGA is permitted to perform the activities of Registered MGA must be permitted to perform the activities of direct insurance or re-insurance business within the IFSC, with reinsurance within India also Indian insurers and from outside India. 6 9 (3) A registered MGA can bind reinsurance (retrocessions) on Binding reinsurance on behalf of the foreign reinsurer must be behalf of the foreign re-insurer. included in the scope of operations of the MGA registered as an intermediary and having BAA with a foreign reinsurer Page 1 of 157 22 (1) This prohibition should be removed as the MGA should be When the reinsurance activities will be included in the scope of allowed for entering into BAA with foreign re-insurers also for operations of MGA, this prohibition will be required to be undertaking re-insurance business. removed 8 Schedule IV - Clarity on loss funds and Claims administration- It is suggested Nil Point 8 that the regulations provide clearer guidance on loss fund funding levels, maintenance of segregated accounts , and extent of claims settlement authority delegated to MGAs, including situations where insurer approval is required 9 3 1(b) (i) Allow multiple insurers in an MGA Program- It is suggested Nil that MGA programs be permitted to involve a panel of insurers rather tha a single insurer, with each insurer participating for a defined share of the risk. 10 Schedule IV Point 8 Flexibilty in the 5% Surplus Rule with Reinsurance support-It Nil is suggested that flexibility be considered in the 5% surplus limit where substantial reinsurance protection exists, subject to appropriate safeguards and reporting 11 10 10(1) The minimum paid-up equity capital of USD 50,000 is Several international jurisdictions (UK FCA,Bermuda BMA) reasonable for established MGAs. However, for the newly allow phased capital requirements for new MGA entrants. This incorporated Indian entities entering the IFSCA market for the would be consistent with IFSCA’s objective of deepening first time, this may present a barrier, particularly where the market infrastructure and attracting a wider range of participants, promoters have strong domain experience but limited initial not just large established foreign MGAs. The 18-month window capital. A phased capital infusion approach - say USD 250,000 ensures the MGA has begun generating revenue before the full at registration with the balance to be brought in within 18 capital commitment is required. months of commencing operations- would encourage serious domestic participation without compromising financial stability. 12 9 9(2) The restriction on soliciting DTA business is understood. The success of the MGA framework depends on applicants being However, the regulation would benefit from a clarifying note able to model their business plans with reasonable certainty. The or guidance on how Section 2CB of the Insurance Act, 1938 current Section 2CB landscape is evolving, and a reference to applies in practice for MGAs — specifically, which classes of existing IRDAI notifications or a commitment to publish an general updated list of permitted DTA classes would substantially insurance business are currently permitted to be written from improve the investability of the IFSC MGA proposition. IFSC for DTA risks, and what the process is for seeking approval for additional classes. Without this clarity, potential applicants cannot assess the commercial viability of an IFSC MGA registration. 13 18 18(5) The USD 10,000 threshold for referring claims to the foreign A low referral threshold undermines the operational purpose of insurer may be too low for certain classes of commercial delegating claims authority to the MGA. If a significant Page 2 of 15insurance, particularly property and engineering lines where proportion of claims must be referred back to the foreign insurer even routine claims (water damage, electrical failure, minor regardless, the speed and efficiency advantage of the MGA fire) can exceed this amount. A tiered threshold based on the model is lost.Commercial property claims in particular routinely class of business or the per-risk limit specified in the BAA exceed USD 10,000, and requiring insurer approval for each one would be more practical — for example, the lesser of USD would create bottlenecks that affect policyholder experience. 50,000 or 5% of the individual policy limit. 14 Sch. IV 14(1) The requirement that the foreign insurer have a minimum net The Lloyd’s market is the global leader in MGA-backed worth of USD 100 million is sensible for ensuring financial delegated authority arrangements. Many Lloyd’s syndicates stability. However, this effectively excludes specialist insurers operate with net worth below USD 100 million individually but and Lloyd’s are backed by theLloyd’s Chain of Security (including the syndicates that may have smaller balance sheets but deep Central Fund of approximately GBP 3 billion). Excluding them expertise in specific classes (e.g., specialty property, parametric from the IFSC MGA framework would remove the single largest covers, marine). global source of MGA capacity and undermine the stated Consider allowing Lloyd’s syndicates or specialist carriers objective of aligning with rated ‘A’ or above to qualify on the basis of the Lloyd’s Central international best practices. Fund backing and market security, rather than individual syndicate net worth. 15 18 18(2) ( c) The BAA must specify “the underwriting capacity allocated by In practice, underwriting capacity allocation is the most the insurer”. It would be helpful if the regulation also required commercially sensitive element of the MGA-insurer the BAA to specify the methodology for adjusting this capacity relationship. Clear regulatory guidance on what constitutes annually — for instance, based on the MGA’s loss experience adequate capacity documentation protects both the MGA (from and portfolio growth. This ensures both parties have a arbitrary capacity withdrawal) and the insurer (from capacity transparent basis for renewal negotiations and avoids disputes. creep beyond their risk appetite). This is standard practice in the Lloyd’s market through annual capacity auctions and would bring discipline to the IFSC framework. 16 21 21(10) The 72-hour cyber event notification requirement is A notification requirement without a corresponding appropriate. However, the regulation should also require the preparedness requirement is incomplete. Policyholders whose MGA to maintain a documented data is held by the MGA in fiduciary capacity deserve assurance incident response plan that is reviewed annually and tested at that the MGA has tested processes for responding to cyber least once a year. Additionally, the definition of “cyber event” incidents, not just an obligation to report them should be clarified — after the fact. Clarifying the threshold for notification also does it include attempted breaches that were successfully prevents both under-reporting (only confirmed breaches) and blocked, or only events where data was actually compromised? over-reporting (every blocked phishing email). 17 Background : N.A. These regulations also propose to supersede the joint- IFSCA MGA Regulations under category of Intermediary is in Point 5 registration framework and all provisions relating to MGA line with changes in Insurance Act which IFSCA and these new previously specified in the Third Schedule of the IFSCA regulations are enabling for the same. This regulation should not (Registration of Insurance Business) Regulations, 2021. The supersede the previous regulations as the same was meant for a previously specified regulation would not be applicable for totally differents et of market participants namely Delegated Authority Holders or Delegated Underwriting Agency. This Page 3 of 15MGA and would be for Delegated Authority Holder/Delegated should continue to allow large reisnurers who want to enter India Underwriting Agency or others as will be notified in future. through this model and is common in US/UK/Dubai and other parts of the world 18 2. Objective "… foreign Re/insurer(s) for underwriting direct/Reinsurance Currently IIO can only write direct insurance business in notified insurance business…" SEZ. This would limit the scope of any MGA and also most countries globally have admitted regime. Any foreign insurers/reinsurer in India wanting to do direct business would need to be a IRDA regulated entity which will limit the scope of such MGA's. Most capacity providers would provide capacity for both direct and reisnurance business and MGA should be allowed to underwrite both if authorised by the foreign insurer/Reinsurer 19 3. Definations b. Applicant iii. A MGA licensed overseas Most brokers globally do not operate MGA directly and it is operated independently as a separate legal entity. Thus licensed MGA operating globally should be allowed to apply as MGA in India to provide a robut framewrok and vibrancy to the market. We note this point is clarified in eligibility of applicant but will be good to have here also to bring out that a MGA can apply as not every jurisdiction they would be an insurance intermediary 20 9. Scope of 1 "...to perform the activities of direct insurance and reinsurance Allowing to do Reinsurance Business both in India (inlcuding Operations business within the IFSC and from outside India order of preference) and overseas will help scale the business to meaningful levels to commensurate with investmnets required to set this up at IFSCA 21 9. Scope of 1 No MGA can bind reinsurance (retrocessions) on behalf of the We wouuld request that Reinsurance be allowed to be Operations insurer. underwritten by MGA. Most global MGA are doing reisnurance not direct insurance- over 90% premium globally outside of US is transacted for MGA through reinsurance only. 22 11 Proffesional "..Provided further the applicant who has established an MGA We note mention of possibility of having MGA as a branch form- Indemnity in a branch form.." can IFSCA clarify if same can be a branch of an Indian broker/or a GIFT city registered broker /or an International MGA? And if that be the case, net worth criterion would be applicable for the holding company ? 23 20 5 The foreign insurer shall not appoint to its board of directors an It is common that MGS has equity ownership and board officer, director, employee or controlling shareholder of its seat/employees from capacity provider. Most capacity provides MGAs. including Swiss /Munich/Hannover have stakes in MGA where they give capacity 24 2 - In the "Objective" words, "reinsurer" and "reinsurance" have In order to facilitate reinsurance by MGAs on behalf of certain been added in the 3rd and 4th lines IIOs registered with IFSCA Page 4 of 1525 3 (1)(b)(i) In the definition of "Applicant" the words, "IIO" and "reinsurance business" have been added in the 3rd and 4th lines. 26 3 (1)(d) In the definition "Binding Authority Agreement" or "BAA", the words"IIO" and "reinsurance" have been added in the 2nd, 3rd and 4th lines. 27 3 (1)(i) In the definition of "Gross Written Premium" or "GWP" the words,"reinsurance premium" and "IIO" have been added in the 2nd and 3rd lines. 28 3 (1)(k) The definition of "Foreign Reinsurer", means a body corporate incorporated under the law of any country outside India and duly registered with its home country regulatory and supervisory authority for transacting reinsurance business, has been added 29 3 (1)(m) The definition of "International Financial Services Centre Insurance Office", or "IIO", means a financial institutionunder clause (c ) of sub-section (1) of section 3 of the Act that is registered with the Authority to undrtake permissible reinsurance activities, has been added. 30 3 (1)(n) In the definition of 'Managing General Agent" or "MGA", the words "IIO" and "reinsurance" have been added in the 2nd and 3rd lines. 31 3 (1)(o) In the definition, "MGA Qualified Person" or"MQP", the word "direct" has been deleted from the 3rd line 32 4 (3) After sub-clause (2), the following has been added, "No person shall act as an MGA and undertake reinsurance business on behalf of any IIO unless there is in force a BAA which sets out the responsibility of each party." 33 5 (1)(b) "It has acted as MGA for direct insurance business" is revised to read as "It has acted as MGA in its home country". 34 5 (2) In the 3rd line, "promoted by a firm or co-operative society or body corporate incorporated underthe law of any country outside India" is revised to read as "promoted by a person resident in India or outside India". 35 6 (3) (e ) The word "cedants" is added. 36 9 (3) "No MGA can bind reinsurance (retrocessions) on behalf of the insurer" is revised to read as "A registered MGA is permitted to bind reinsurance (retrocessions) on behalf of the IIOs". Page 5 of 1537 18 (1) A proviso to the subclause 18(1) has been added- "Notwithstanding anything to the contrary stated in the Regulations or the IFSCA (Operations of International Financial Services Centres Insurance Office) Guidelines, 2021, the IIO will be permitted ton outsource decision-making in underwriting and claims settlement and investment function to the MGA in accordance with the terms entailed in the BAA." 38 19 (1) The words "IIO" and "cedant" have been included in the 2nd and 4th lines. 39 21A The regualtion regarding the "Duties of IIOs and their Operation Oversight" has been added - a. The IIO or its home office shall conduct an independent annual audit of the records of the MGA to satisfy that MGA complies with BAA and has a positive net-worth. b. The IIO shall conduct an on-site review of the MGA's underwriting and claims processing activities on a yearly basis. c. The arrangement between the IIO and an MGA shall be treated as ' Material Outsourcing Arrangement'. d. The home office of the IIO shall not only appoint its representatives as director or PO of the MGA upon approval from the Authority." 40 22 (1) The words "or foreign reinsurer that is not an IIO" have been added to read as "Every MGA is prohibited from binding reinsurance or retrocession contracts on behalf of the foreign insurer or foreign reinsurer that is not an IIO". 41 22 (5) The words "except as provided in this Regulations" have been added to read as"Jointly employing an individual who is employed with the foreign insurer except as provided in this Regulations" 42 24 (1) The word "IIO" has been added. 43 24 (2) The word "cedants" has been added. 44 Schedule I 1(1) The word "IIO" has been added. 45 Schedule I 1(2) Under "Binding Authority" - words "reinsurance" and statement "on behalf of the foreign insurer or IIO as the case may be" has been added to read as 'Binding Authority' - Exercising delegated authority to bind risks , issue binders, and execute insurance or reinsurance contracts on behalf of the Page 6 of 15foreign insurer or IIO as the case may be, within the limits specified in the BAA. 46 Reg. No.33 The IFSCA (Operations of IFSC Insurance Office Guidelines) 2021 will be amended as per Schedule 1 from the date of notification of the Regulations. 47 Schedule V Definition of Outsourcing in clause 3, 1(a) of Chapter 6 of the New Schedule inserted to amend the definition of Outsourcing IFSC Insurance Office Guidelines) 2021 to be substituted by in the IIO guidelines in order to enable MGAs to underwrite on the following "Outsourcing" is defined as the use of third-party behalf of certain IIOs servicesby the IIO, except MGAs registered by the Authority under the IFSCA(Managing General Agent) Regulations, 2026, to perform such activities which are not prohibited from outsourcing, either now or in futureClause 3 (2) of Chapter 6 of the IFSC (Operations of IFSC Insurance Office Guidelines) 2021 to be substituted by the following:"Activities prohibited from Outsourcing":Except under a delegated authority arrangement to an MGA registered by the Authority under the IFSCA (Managing General Agent) Regulations, 2026, the IIO are prhibited from Outsoucing following activities in any manner:(a) Regulatory Compliance:(b) Decision aking in Underwriting and Claims;(c) Investment and related functions;(d) Enterprise wide risk management;" 48 3 (b) Applicant means- Rationale for amendment to Regulation 3(b) and 5(1) (i) a body corporate incorporated outside India, which is The current draft regulations permit – (i) a foreign MGA to registered as an apply and register as an MGA by setting up of a branch office in insurance intermediary under these regulations and authorized the IFSC; or (ii) an entity registered under the Companies Act, by foreign insurer(s) pursuant to BAA to manage part of its 2013, which may be promoted by a firm or co-operative society direct insurance business including solicitation, underwriting or body corporate incorporated outside India to apply and risks and/or settling the claims, or register as an MGA in the IFSC, subject to meeting the specified conditions. (ii) a company incorporated under the Companies Act, 2013 (No. 18 of 2013), or It is proposed to also include an Indian MGAs (once enablement is provided through regulations by IRDAI) also in the applicant (iii) an MGA registered with IRDAI. category to set up a branch office and register as an MGA in the 49 5 (1) An applicant registered or licensed as MGA in India or a IFSC. jurisdiction outside India and desirous of setting up branch office in an unincorporated form in an IFSC shall meet with the • The recent amendments to the Insurance Act, 1938 already following requirements.(a) It holds a valid certificate of provide an enabling framework for MGAs, and therefore, the registration issued by its home country regulatory or introduction of a formal regulatory regime by IRDAI would be supervisory authority, which is not withdrawn, cancelled or a natural progression in the coming days. Page 7 of 15suspended,(b) It has acted as MGA for direct insurance business,(c) It is from a FATF compliant jurisdiction or • Also, it is humbly submitted that, this approach will be in line country.(d) It is registered or certified in a National Regulatory with IFSCA’s approach Environment with whom the Government of India has signed Double Taxation Avoidance Agreement; and(e) It has obtained ‘No-objection certificate’ from its home country regulatory or with regard to its IFSCA (Insurance Intermediary) Regulations supervisory body to establish a branch office in IFSC 2021, which allows intermediaries registered under IRDAI to establish branch offices in the IFSC and undertake permitted activities. • Established Indian insurance market participants possess a strong track record in underwriting, distribution, and risk management, which can contribute meaningfully to the development of the IFSC insurance landscape. • This would promote regulatory parity, facilitate ease of doing business for Indian entities, and further strengthen the IFSC ecosystem. 50 5 (2) An entity not falling under category mentioned in sub- The current draft regulations permit only those entities not regulation (1) shall be registered in the IFSC under the covered under sub-regulation (1), and having foreign promoters, Companies Act, 2013 (No. 18 of 2013), which may be to register as MGA in the IFSC. This effectively excludes entities promoted by a firm or co-operative society or body corporate with Indian promoters from establishing Managing General incorporated under the law of India or any country outside Agents (MGAs) in the IFSC. India, shall have minimum net worth and paid up equity capital, as prescribed in regulation 10 these regulations. • In the interest of ensuring regulatory parity, it is submitted that entities with Indian promoters should also be permitted to establish MGAs in the IFSC, subject to compliance with prescribed net worth and equity capital requirements. • Allowing participation by Indian promoter entities would enable the IFSC to leverage the significant expertise, operational experience, and domain knowledge available within the domestic insurance ecosystem. 51 10 6 It is suggested to authorize a Company Secretary in Practice A PCS is very well conversant with the technicalities of (PCS) to certify the paid-up capital and net-worth certificate. certifying the Net Worth and is recognised by various authorities The suggested revised text is provided as under:“The MGA viz. MCA, BSE, NSE, NSDL & CDSL for issuing the same. The Page 8 of 15shall submit to the Authority a paid-up capital and net-worth PCS is also acquainted with the working and compliance certificate issued by its statutory auditor or Company Secretary requirements required to be carried out by an Insurance in Practice on half yearly basis. “ Intermediary.Further, the International Financial Services Centres Authority (IFSCA) has recognized PCS under various regulations, wherein PCS is already authorized to certify paid-up capital and net-worth certificates, at par with other professionals. These include the following regulations/ circular:1. International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021.2. IFSCA Circular 1744/IFSCA/BATF/2024- 25 dated June 28, 2024Therefore, in view of the recognitions accorded to the PCS and expertise possessed by them, it is submitted that the PCS may kindly be considered at par with other professionals and be authorised to issue Net Worth Certificate for the MGAs. 52 A registered MGA is permitted to perform the activities of This scope of operation is quite limited in comparison to the -- -- direct insurance business within the IFSC and from outside extent of work that MGA's do , who are registered in other India; jurisdictions 53 No MGA can bind reinsurance (retrocessions) on behalf of the Predominantly, most MGA's worldwide underwrite reinsurance insurer. business under binding authority arrangements. The document also states that , these regulations are propsoed to supersede the Joint registration framework and all provisions relating to MGA -- -- previously specified in the third schedule of the IFSCA regulations. This proposed regulations narrows down the scope of work which will make it uninteresting for reinsurance brokers in GIFT City to venture out as as MGA 54 -- -- An MGA shall conduct its business in such foreign currencies This assumes that , MGA's are not permitted to look at business other than Indian Rupee as may be specified by the Authority. in the DTA. This extends the argument of the narrow pathway accorded for the MGA to operate. 55 -- -- Not permitted to Bind reinsurance or retrocessions contracts on Most of the special economic zones notably including the DIFC behalf of the foreign insurer. or the Abudhabi Global Market offer a platform for MGA's to have a focus on reinsurance. 56 9.Scope of (3) No MGA Reconsider the Reinsurance Prohibition: The draft explicitly To align with Lloyd’s (UK) and Singapore (MAS), where Operations can bind prohibits MGAs from binding reinsurance/retrocession. In the specialized MGAs provide critical capacity for niche reinsurance reinsurance UK (Lloyd's) and Singapore, specialized "Reinsurance MGAs" treaties. A blanket ban may deter global reinsurers from using (retrocessions) are vital for niche capacity. Accordingly, a tiered licensing GIFT City as a regional hub. on behalf of model may be permitted. It is suggested that a specialized the insurer. category of "Reinsurance MGAs" with higher net-worth requirements (e.g., USD 100,000) or provide mandatory Page 9 of 15Professional Indemnity (PI) cover may be permitted to bind reinsurance rather than a blanket ban. 57 10. Capital and 1. Every MGA Move towards Risk-Based Capital (RBC): The draft stipulates In order to align with Australia (APRA) and EU (Solvency II) Net worth incorporated in flat minimum paid-up capital requirements for all MGA principles. This would ensure that larger MGAs underwrite Requirements the IFSC shall categories. Jurisdictions like Australia (APRA) and Singapore business proportional to their risk exposure without creating a maintain a (MAS) use a risk-based approach. It is suggested to introduce a high barrier to entry for niche InsurTech MGAs. minimum scaled capital model where the requirement is the higher of a paid-up equity base amount (e.g., USD 50,000) or a percentage (e.g., 2.5%) of capital or the total premium managed. assigned capital, as the case may be, equivalent to USD 5,00, 000 (USD Five Lakh only), which is to be held in an IBU. 58 SCHEDULE-IV - Harmonize the Binding Authority Agreement (BAA): A more principle-based and flexible BAA approach would better MANDATORY Schedule-IV of the draft prescribes specific BAA clauses. The support innovation, operational efficiency, and alignment with PROVISIONS BAA framework appears to be relatively prescriptive and international standards. This would also facilitate easier OF BINDING control-oriented compared to global practices. Key gaps management of multi-country programs. AUTHORITY include limited flexibility in structuring delegated authority AGREEMENT based on business class and MGA capability, a fixed claims (BAA) approval threshold which may not be practical for certain lines such as health or high-frequency portfolios, lack of explicit recognition of advisory and analytics functions within the MGA mandate, and insufficient clarity on integration with reinsurance structures and multi-party program arrangements. Further, rigid fund flow requirements and limited guidance on data ownership and usage may constrain scalability and efficiency of global program models. It is suggested that the IFSCA accept BAAs that follow internationally recognized templates (like Lloyd's Wordings) to reduce the legal "onboarding" time for foreign insurers entering the IFSC. Page 10 of 1559 The Binding (5) Any claim Claims approval threshold: This may not be practical for certain To compete with established jurisdictions such as DIFC (Dubai) Authority exceeding lines such as health or high-frequency portfolios. It is suggested which facilitates competitive speed-to-settlement for foreign Agreement USD 10,000 or to permit Customary Claims Limits based on class of business policyholders. (BAA) involving a and MGA track record. coverage dispute shall be referred to the concerned foreign insurer for prior approval. 60 CHAPTER-1 (2) These Absence of Consulting / Advisory Role: Current framework This would facilitate the IFSC becoming a knowledge and PRELIMINARY regulations limits MGA to operational roles (UW, claims, distribution) analytics hub & may attarct advanced, specialty MGAs in IFSC establish a Globally MGAs also, Design products, provide pricing and comprehensive analytics & support insurer strategies for marketing products. framework for the registration and operation of Managing General Agents (MGAs) which as an insurance intermediary shall possess delegated authority from the foreign insurer(s) for underwriting direct insurance business and settlement of claims. 61 Reg 3 1(d) The definition of ‘Binding Authority Agreement’ or ‘BAA’ The definition of binding agreement should be consistent under should be revised in line with the definition of “binding both regulations. agreement” as set out under regulation 3(1)(d) of the Page 11 of 15International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021. 62 Reg 3 1(i) The definition of 'Gross Written Premium' should not be The introduction of a definition of Gross Written Premium, and introduced for the purpose of imposing a cap on the premium the consequent imposition of limits on GWP that an MGA may that an MGA may produce with respect to a single foreign produce in a financial year with respect to a foreign insurer, insurer in a financial year. In the alternative, if IFSCA is would be highly conservative and restrictive. An MGA may be inclined to retain a GWP-based limit, the threshold should be the sole or primary distribution arm of a foreign insurer in a significantly higher than currently proposed, and should in any specific territory or product line, making a 10% ceiling on the event be subject to upward revision by IFSCA on application insurer's GWP commercially unworkable from inception. The by the MGA and the relevant foreign insurer. cap also creates perverse incentives — an MGA that is performing well and growing its book would be penalised for its success or forced to artificially distribute business across multiple foreign insurers solely for regulatory compliance purposes. Prudential concerns around concentration risk are better addressed through governance-based safeguards: board- approved underwriting guidelines, aggregate exposure limits within the BAA, periodic audits, and mandatory reporting to IFSCA. These are the tools that international regulators rely on, and they are proportionate. A blanket GWP cap, by contrast, may render the IFSC MGA framework commercially unattractive before it has had the opportunity to demonstrate its potential. 63 Reg 3 1 (j) Definition of ‘Foreign Insurer’ should be revised in line with The definition of Foreign Insurer/ Foreign Re-insurer should be the definition of ‘Foreign Insurer or Foreign Re-insurer’ as set consistent under both Regulations. out under Regulation 3(1)(h) of the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021. 64 Reg 3 (1) (l) The definition of MGA should be revised to include an MGA For the reasons set out in the Introductory Note, the definition of which is registered and authorized by a foreign re-insurer MGA should extend to entities authorised by a foreign reinsurer pursuant to a Binding Authority Agreement (BAA) to manage pursuant to a BAA. A definition that captures only foreign its reinsurance business. insurers fails to reflect the full spectrum of delegated authority arrangements that constitute the MGA model internationally. 65 Reg 3 (1)(q) The definition of ‘Underwrite and/or Underwriting’ should be The definition of ‘Underwrite and/or Underwriting’ including revised to include authority to accept or reject insurance risk or only foreign insurer would be highly conservative and restrictive insurance liability on behalf of foreign re-insurer. and may potentially make the MGA model commercially unviable. 66 Reg 4 (2) The scope of this provision should be expanded to include For the reasons set out in the Introductory Note, the prohibition placement of business by an MGA with a foreign re-insurer. on acting as an MGA without a BAA in force should apply The revised suggested clause is as under: “No person shall act equally to placements with foreign reinsurers. The suggested as an MGA and place business with any foreign insurer or revised clause has been provided in the Comments column. Page 12 of 15foreign re-insurer unless there is in force BAA which sets forth the responsibilities of each party.” 67 Reg 5 1 (b) The scope of this provision should be expanded to include For the reasons set out in the Introductory Note, the eligibility reinsurance business. criteria should not be restricted to MGAs managing direct insurance business. MGAs registered in foreign jurisdictions whose primary mandate involves reinsurance binding authorities should equally be eligible for registration under this framework. 68 Reg 6 (8) Regulation 6(8) should be deleted as it is substantially This sub-regulation is repetitive. As a matter of good legislative duplicative of Regulation 6(5). drafting, redundant provisions ought to be avoided. 69 Reg 7 ‘(2) The scope of this Regulation should be revised to read as “to An MGA of a foreign jurisdiction may not comply with all the extent applicable.” provisions of the Insurance Act,1938. The revised suggested clause is as under: “It shall comply with the provisions of the Insurance Act, 1938, IFSCA Act, 2019 and the Regulations, Circulars, Guidelines and any other applicable instructions issued thereunder from time to time by the Authority, to the extent made applicable.” 70 Reg 9 (1) The scope of MGA operations should be expanded to include For the reasons set out in the Introductory Note, the scope of reinsurance business permitted MGA activities should expressly include reinsurance The revised suggested clause is as under: and retrocession business. The suggested revised clause has been “A registered MGA is permitted to perform the activities of provided in the Comments column. direct insurance business and/or reinsurance business within the IFSC and from outside India;" 71 Reg 9 NA A sub-regulation should be included to specify the order of The identified regulation is silent on the manner in which the preference for cession in accordance with which the MGA may MGA should place re-insurers’ business in relation to insurers be permitted to accept reinsurance business from insurers operating in DTA. We believe that an MGA operating in an operating in DTA. The suggested clause is as under:“A IFSC should be permitted to bind foreign reinsurance/ registered MGA may accept reinsurance business from insurers retrocession contracts as well and hence this provision needs to operating in the DTA in accordance with the order of be included to reflect this position and provide guidance on the preference for cession as specified under the IRDAI order of preference of cession to be followed. (Reinsurance) Regulations, 2018, as amended by the IRDAI (Reinsurance) (Amendment) Regulations, 2023, and read with the Master Circular on Reinsurance, 2024, each as amended from time to time.” 72 Reg 9 (3) The prohibition on the MGA from binding reinsurance The proposed regulations prohibit MGAs from binding (retrocessions) on behalf of re-insurer should be deleted as it reinsurance or retrocession contracts and only permit direct Reg 22 '(1) would defeat the purpose of allowing the MGA model in IFSC. insurance business. To write direct insurance in any country outside India, a licensed entity must hold an insurance licence in that jurisdiction. An IFSC MGA therefore cannot readily access direct insurance markets across most of the world without Page 13 of 15obtaining country-specific licences, making direct business, as a standalone proposition, commercially unviable for most MGAs. Reinsurance and retrocession business would naturally be the more accessible and commercially meaningful avenue for an IFSC MGA operating in global markets. By prohibiting MGAs from binding reinsurance contracts, the Proposed Regulations foreclose this avenue, leaving the MGA with neither a viable direct business path nor a reinsurance one. The net effect is that the IFSC MGA framework, as proposed, would be rendered largely redundant from a commercial standpoint. 73 The identified sub-regulation should be revised to include the For the reasons set out in the Introductory Note, an MGA reference of foreign re-insurers to permit an MGA to execute operating in the IFSC should be permitted to execute a BAA with Reg 18 (2), (3), (5) or to enter into a BAA with foreign re-insurers. a foreign reinsurer. The current draft is silent on this, and the sub- regulations should be revised accordingly to bring foreign reinsurers within their scope. 74 Reg 18 NA The regulations should expressly clarify that an MGA can enter The Proposed Regulations are silent on whether an MGA may into a BAA with one or more foreign insurer/ foreign re- enter into multiple BAAs. This is a fundamental question worth insurers. clarifying. It is submitted that in global markets, holding binding authorities from multiple insurers/ re-insurers is standard practice and is fundamental to the commercial viability of the MGA model. 75 Reg 19 (1), (3), (5)(a), The identified sub-regulation should be revised to also include For the reasons set out in the Introductory Note, the provisions (5)(b) reference to foreign re-insurers to ensure that the MGA deals governing collection and remittance of premium and claims with reinsurance premiums and reinsurance claims monies in monies should extend to reinsurance premiums and reinsurance accordance with the guidelines applicable to ‘insurance claims. The guidelines applicable to 'insurance accounts' should accounts’. apply mutatis mutandis to reinsurance accounts handled by the MGA. 76 Reg 20 (1), (2), (3), The scope of this Regulation should be expanded to include the For the reasons set out in the Introductory Note, the duties and (4), (5) duties of foreign re-insurers and their operational oversight. oversight obligations set out in this Regulation should apply equally to foreign reinsurers whose business is managed by an IFSC MGA. Without this, the oversight framework is incomplete. 77 Reg 22 The term "sub-producer" should be expressly defined. The term "sub-producer" is used in Schedule I (solicitation Schedule I through sub-producers), Schedule II (MGA is strictly liable for Schedule II sub-producers), and Regulation 22(4) (sub-producers cannot serve on insurer's board). However, there is no definition of sub- producer anywhere in the regulations. Page 14 of 1578 Schedule I The Schedules should be expanded suitably to provide the For the reasons set out in the Introductory Note, the Schedules Schedule II Functions and Activities of MGA, Code of conduct of MGA should be expanded to address the functions, code of conduct, Schedule IV and MANDATORY PROVISIONS OF BINDING and mandatory BAA provisions applicable to reinsurance AUTHORITY AGREEMENT (BAA) provisions as applicable business. The Schedules in their current form are drafted in relation to reinsurance business. exclusively around direct insurance and do not contemplate reinsurance binding authorities. 79 3 (b) The regulations should also allow MGAs to enter into Binding Indian insurance companies should also be able to utilize MGA Authority Agreement (BAA) with insurance companies for their facilities in IFSCA. registered in India under Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 80 5 2 In our understanding, an entity registered as ‘insurance Indian insurance intermediaries should also be able to apply to intermediary” under Sabka Bima Sabki Raksha (Amendment work as MGA without separately getting incorporated in IFSCA of Insurance Laws) Act, 2025 is allowed to become an MGA under the proposed IFSCA (Managing General Agents) Regulations, 2026 while continue to hold the existing registration with IRDAI. We request for exemption of the requirement of registration in the IFSC under the Companies Act, 2013 by such insurance intermediaries opening their branch in IIO. IFSCA Response: The inputs / comments received from the public consultation were suitably considered. The said inputs / comments along with modified draft of IFSCA (Managing General Agents) Regulations, 2026, were placed before the Authority in the meeting held on April 17, 2026. Page 15 of 15