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Global reinsurers eye GIFT IFSC as India’s market expands
Reinsurers are companies that insure insurance companies.
Many international reinsurers may open offices in GIFT City, Gujarat, during fiscal year 2026-27.
They want to participate in India’s large reinsurance market.
GIFT City offers tax benefits and gives these companies a stronger position under India’s reinsurance rules.
New collateral requirements for some cross-border reinsurers have also encouraged companies to establish local offices.
GIFT City already has 41 insurance offices and 26 reinsurers from many countries.
Its insurance offices wrote about $649 million in gross premiums in FY26, nearly four times the previous year’s amount.
Officials expect the centre to develop more local talent and handle international insurance business.
They also expect growth in life, health, and foreign-currency insurance products.
Fifteen global reinsurers are expected to apply for GIFT City offices in fiscal year 2026-27.
India’s reinsurance market is valued at ₹1.12 trillion, according to the report.
GIFT City currently has 41 International Financial Services Centre Insurance Offices and 26 reinsurers from 18 countries.
IIO gross premiums nearly quadrupled to about $649 million in FY26 from $162 million the previous year.
IFSCA expects GIFT City’s next growth phase to include local underwriting, international business, and products beyond traditional reinsurance.
- Who
- The International Financial Services Centres Authority, led by chairperson K. Rajaraman, and global reinsurers considering GIFT City offices.
- What
- Fifteen reinsurers are expected to seek entry into GIFT IFSC during FY27, adding to the centre’s growing insurance presence.
- Where
- GIFT City in Gujarat, India, which hosts India’s only International Financial Services Centre.
- When
- Applications are expected during fiscal year 2026-27; the report also cites FY26 performance figures.
- Why
- Reinsurers want access to India’s ₹1.12 trillion reinsurance market, while GIFT City offers tax benefits, lower capital intensity, and a favourable regulatory position.
GIFT City expansion outlook
Competitive concerns
Impact on India’s reinsurance market
GIFT City expansion outlook
IFSCA chairperson K. Rajaraman said the ecosystem is moving into a phase of scale, with expectations for more local underwriting, international business, and broader insurance products.
Competitive concerns
General Insurance Corporation of India has flagged competition from GIFT City, while remaining optimistic about the overall reinsurance sector.
Why reinsurers are establishing offices
GIFT City expansion outlook
GIFT City provides tax benefits, requires less capital, and receives a higher preference than cross-border reinsurers under India’s placement framework.
Competitive concerns
The expansion of GIFT-based offices increases competition for existing domestic and foreign reinsurance businesses, particularly after collateral requirements affected cross-border reinsurers.
Key facts
- Expected applicants
- 15 global reinsurers in FY27
- Indian reinsurance market
- ₹1.12 trillion
- Current GIFT City presence
- 41 International Financial Services Centre Insurance Offices and 26 reinsurers from 18 countries
- FY26 IIO gross premiums
- About $649 million, up from about $162 million the previous year
- Direct insurer applications
- Five applications are under process, with two more direct insurers expected to apply in FY27
- Key regulator
- International Financial Services Centres Authority
- Market expansion
- Proposed frameworks cover insurance-linked securities, mutual insurers, and protection and indemnity clubs
Quotes
K. Rajaraman
Chairperson of the International Financial Services Centres Authority
“Now our focus is on seeing how the reinsurance entities actually undertake more substantial activities and also how to develop talent in the GIFT City ecosystem”
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Shivangi Sharma Talwar
Partner at law firm JSA
“In 2024, the regulator imposed collateral requirements on cross-border reinsurers for reinsurance placements from FY26 onwards. That meant that if you wanted to reinsure as a cross-border reinsurer, you had to provide collateral to Indian insurers”
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Sources
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