Indian insurers can now invest in fund of funds

But they can not invest into policyholder funds outside India.

Indian insurers are now allowed to invest in fund of funds (FoFs), according to the Insurance Regulatory and Development Authority of India (IRDAI).

The regulator stipulated that an insurer invest only in alternative investment funds (AIFs) which comply with Section 27E of the Insurance Act, 1938.

Insurers shall not invest directly or indirectly into policyholder funds outside India. No investment is permitted into AIFs which undertake leverage or borrowing other than to meet day-to-day operational requirements and as permitted under SEBI (AIF) Regulations.

In addition, no insurer shall invest in an AIF, which in turn has exposure to a FoF, in which the insurer has already taken an exposure.

Moreover, insurers shall on a quarterly basis obtain a certificate issued by the concurrent auditor affirming compliance of the above conditions and file the same along with quarterly periodical returns.

Also Read

Philippine life insurance sector slated for 5.4% CAGR by 2028

Property insurance industry to exceed $152b by 2028

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit