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The International Financial Services Centres Authority allows IFSC Insurance Offices to maintain the stipulated solvency margin at the head office of the company for an initial period of five years. This maintenance satisfies the solvency requirement if the company meets specific conditions. The company must invest the assets backing the solvency margin in government bonds. The assets backing the solvency margin must remain unencumbered at all times. The IFSC Insurance Office must submit a quarterly certificate signed by the appointed actuary to confirm that the head office maintains the assets, liabilities, and solvency margin on its behalf.
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[Image omitted. See the official document.]
CIRCULAR
F. No 171/ IFSCA/ INSURANCE-CIRCULAR/ 2020-21
Date: 18^th^ January, 2021
To, All IFSC Insurance Offices,
Sub: Maintenance of Solvency Margin for IFSC Insurance Offices (IIOs)
Clause 21 (f) of IRDAI (IFSC Insurance Office) Guidelines, 2017 vide Guidelines ref. no IRDA/RI/GDL/SEZ/269/12/2017, dated 21th December 2017 stipulates that, "The IIO shall prepare and submit a separate statement of assets, liabilities and solvency margin requirements in the manner as may be specified in the IRDAI (Assets, Liabilities and Solvency Margin of General Insurance Business) Regulations, 2016 and IRDAI (Assets, Liabilities and Solvency Margin of Life Insurance Business) Regulations, 2016."
In this context, based on the discussions and representations from stakeholders it is clarified that for the initial period of five years, the maintenance of stipulated solvency margin at head office of the company of Insurance Offices in IFSC, shall be considered as compliance of the aforesaid provisions, provided that ;
This circular is issued in exercise of powers conferred under section 12 of the IFSCA Act, 2019.
A copy of this circular is available on the website of International Financial Services Centres Authority at www.ifsca.gov.in
Yours faithfully,
Arjun Prasad
Deputy General Manager
arjun.pd@ifsca.gov.in
