The International Financial Services Centres Authority’s new rules give managing general agents the authority to help foreign insurers to settle claims and underwrite direct insurance business, which ensures accountability and transparency to policyholders.
The International Financial Services Centres Authority (IFSCA), (Managing General Agents) Regulations, 2026 (the rules) took effect from 8 June 2026. The rules ease the burden on foreign insurers operating in international financial services centres in India and follows the IFSCA’s approved draft regulations on 11 May 2026.
Managing general agents (MGAs) are delegated authority from foreign insurers to underwrite direct insurance business or settle claims. The rules provide a framework for registration, regulation and operation of MGAs.
MGAs can now establish a branch in international financial services centres in India by applying to the IFSCA. Applicants must have a valid registration and a no-objection certificate from their home jurisdiction. Their home jurisdiction must also have a double-tax avoidance agreement with the Indian government.
Foreign insurers must have a valid registration and maintain a satisfactory record of regulatory and supervisory compliance in their home jurisdiction, with a minimum net worth of USD100 million and a credit rating of no less than “A”.
Foreign insurers will also be required to submit a board resolution undertaking liability for outcomes of their MGA’s operations in the centres.
When an MGA represents or acts on behalf of multiple foreign insurers, the MGA shall ensure the foreign insurer has complied with the rules.
