India’s GIFT City Becomes Global Reinsurance Hub as Lloyd’s and Peers Move In

Lloyd’s of London and other large reinsurers are pursuing regulatory approval to operate from Gujarat International Finance Tec-City, as per Reuters reports. South Korea’s Samsung Re, Kenya Re and Spain’s Mapfre Re are also expected to file applications this year.  

India’s Insurance Market Draw 

The firms are targeting India’s insurance market, estimated at $129.78 billion, which industry estimates place as the 10th largest globally.  

India’s reinsurance market is currently dominated by Swiss Re, Munich Re, private domestic firms and government-owned GIC Re. Recent policy measures aimed at increasing insurance coverage are expected to raise demand for reinsurance capacity. 

Tax and Regulatory Environment 

GIFT City offers incentives such as a 10-year tax holiday and exemptions from capital gains tax. The government has said the centre is intended to compete with international financial hubs such as Singapore and Dubai.  

Reinsurers operating in GIFT City can follow solvency norms set by their home regulators, instead of India’s domestic requirement of a 150% solvency ratio. 

Existing Reinsurers in GIFT City 

About 14 international reinsurers currently operate from GIFT City, managing annualised premiums of $700 million to $800 million, based on public disclosures. 

Recent approvals include Saudi Re, Korean Re, Peak Re, Kuwait Re, Abu Dhabi National Insurance and Kazakhstan-based Eurasia Insurance Company JSC. Saudi Re recently opened its GIFT City branch, its second in Asia after Malaysia. 

As per the reports, regulatory officials expect the number of reinsurers in the city to reach at least 20 by the end of March 2026, subject to pending approvals.  

International firms are seeking to offer products that are less developed in India, including surety bonds, parametric insurance, marine and shipping cover, cyber risk cover and health reinsurance. 

Read More: Punjab & Sind Bank Gets RBI Nod to Open Branch at GIFT City IFSC! 

Conclusion 

GIFT City is becoming a base for international reinsurers looking to access India’s insurance market, supported by tax incentives and a regulatory framework aligned with global practices. 

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