International Financial Services Centres Authority (Management Control, Administrative Control and Market Conduct of insurance business) Regulations, 2023
On 26th April 2023, the International Financial Services Centres Authority (IFSCA) issued a Notification No. IFSCA/2022-23/GN/REG035, titled “International Financial Services Centres Authority (Management Control, Administrative Control and Market Conduct of insurance business) Regulations, 2023”.
The IFSCA Management Control Administrative Control and Market Conduct of Insurance Business Regulations 2023 are designed to specify the regulatory framework related to management control, administrative control and market conduct of insurance business carried out by an IIO or IIIO. These regulations mention the change in shareholding pattern and management control for IIO set up in an incorporated form. They also specify the internal administrative controls, including the expenses of management, payment of commissions, places of business, outsourcing of activities, and sharing of confidential information concerning domestic or foreign entities.
The regulations also provide provisions for market conduct for such IIOs, including the distribution of surplus to policyholders, acquisition of surrender and paid-up values of life insurance policies, minimum limits for annuities and other benefits, advertisements, and policyholders’ protection.
Additionally, the regulations also specify provisions with respect to reporting and general requirements, the power to specify procedures, the power to remove difficulties and relax strict enforcement of th regulations also specify provisions with respect to reporting and general requirements, the power to specify procedures, the power to remove difficulties and relax strict enforcement of th e regulations, and the non-applicability of certain regulations and savings.
