The International Financial Services Centres Authority (IFSCA) on June 12, 2026, International Financial Services Centres Authority (Managing General Agents) Regulations, 2026.
These regulations aims to provide a comprehensive regulatory framework for the registration, regulation and operation of Managing General Agents (MGAs) operating in International Financial Services Centres (IFSCs) in India, which possess delegated authority from the foreign insurer(s) for underwriting direct insurance business or settlement of claims, ensuring they operate with transparency and accountability to protect policyholders’ interests and support the orderly growth and development of the insurance ecosystem in the IFSCs.
The regulations lay down detailed eligibility criteria for entities seeking registration as a Managing General Agent (MGA) in an IFSC. Applicants operating from outside India must hold valid licenses in their home jurisdiction, have prior experience in insurance-related activities such as solicitation, underwriting, or claims settlement, and obtain a No Objection Certificate from their home regulator. They must also be based in jurisdictions with which India has a Double Taxation Avoidance Agreement and must not belong to FATF-designated high-risk jurisdictions. Additionally, applicants must have at least one contract with a foreign insurer meeting strict financial, regulatory, and credit rating requirements.
The application process requires submission through a prescribed online format along with fees and supporting documents. The Competent Authority may seek additional information and highlight deficiencies, granting applicants 30 days to rectify them. Registration is granted only after thorough evaluation of factors such as capital adequacy, competence of personnel, infrastructure readiness, and overall suitability in the interest of policyholders. Even after approval, the Authority may impose additional conditions, and the registration remains valid unless suspended or cancelled.
Once registered, an MGA must comply with several operational conditions, including maintaining valid agreements with foreign insurers, adhering to anti-money laundering guidelines, ensuring proper grievance redressal mechanisms, and avoiding prohibited practices like multi-level marketing. They must commence business within 180 days (extendable up to 18 months) and operate only within the permitted scope, including restrictions on soliciting business from India’s domestic tariff area.
The regulations also prescribe strict financial and operational requirements such as minimum capital, net worth thresholds, professional indemnity insurance, and deposit obligations. MGAs must maintain fiduciary accounts for handling premiums and claims, ensure segregation of funds, and follow robust governance practices including internal controls, audits, and board-approved policies. Clear guidelines are also provided on prohibited activities, execution of agreements with foreign insurers, record maintenance, and disclosure norms to ensure transparency, accountability, and policyholder protection.
They shall come into force on June 12, 2026.
[Notification No. IFSCA/GN/2026/ 010]
