Global Reinsurers Flock to India's GIFT City, Challenging Singapore and Dubai
GANDHINAGAR — India's ambitious Gujarat International Finance Tec-City (GIFT City) is emerging as a magnet for the global reinsurance industry, with a fresh cohort of major players filing applications to establish operations within its special economic zone, sources familiar with the matter told Reuters.
The list of firms seeking regulatory clearance includes the iconic Lloyd's of London, South Korea's Samsung Re, Spain's Mapfre Re, and Africa's Kenya Re. If approved, they would join over a dozen international reinsurers already active in the hub, such as Korean Re, Peak Re, and Saudi Re, which recently opened its second Asian branch there.
This influx signals a strategic shift for GIFT City, a pet project of the Indian government designed to compete with hubs like Singapore and Dubai. Its appeal lies in a potent mix of a decade-long tax holiday, capital gains exemptions, and a unique regulatory feature: foreign reinsurers can operate under solvency norms from their home jurisdictions, which are often less stringent than India's 150% minimum ratio.
"With a globally aligned regulatory framework and enabling reforms, we are seeing growing interest from global reinsurers in the GIFT IFSC opportunity," said Dipesh Shah, Executive Director of the International Financial Services Centres Authority (IFSCA).
The momentum follows pivotal regulatory changes. In December, Parliament raised the foreign direct investment cap in insurance to 100%, unlocking the sector for full overseas ownership. Reinsurers are now poised to introduce specialized products like surety bonds, parametric insurance, and cyber risk policies to the under-penetrated Indian market.
Industry sources estimate the number of reinsurers in GIFT City could swell from 14 currently to 20 by March 2026. The domestic market, long dominated by Swiss Re, Munich Re, and state-run GIC Re, is bracing for intensified competition and innovation.
Market Voices: Analysts Weigh In
Priya Sharma, Financial Analyst at Mumbai-based Bharat Insights: "This isn't just about geography; it's a validation of India's regulatory foresight. GIFT City's model allows firms to tap into India's growth story—projected to be the world's third-largest insurance market by 2032—without the initial regulatory friction. It's a smart gateway strategy."
David Chen, Partner at Singapore-based Asia Risk Advisors: "The solvency norm waiver is a masterstroke. It removes a major entry barrier. However, the real test will be whether the infrastructure and talent pool can scale to support this rapid influx. Dubai and Singapore didn't become hubs overnight."
Rohan Mehta, Independent Insurance Consultant (Formerly with a national insurer): "Let's not get carried away. This is a classic race-to-the-bottom tactic using tax giveaways. What about creating a truly robust domestic industry? These global firms will skim the profitable top-tier business and leave the complex, mass-market risks to local players. It's a short-term gain for headlines, not long-term stability for the Indian policyholder."
Anjali Kapoor, Head of Research at IFSCA's Market Development Group: "The diversity of applicants—from London to Nairobi—shows GIFT City's global appeal. Each brings niche expertise. Kenya Re's experience in agricultural risk, for instance, could be transformative for India's farming sector. This is about filling product gaps, not just capital."
Lloyd's of London declined to comment. Requests for comment sent to Mapfre Re, Samsung Re, and Kenya Re were not answered by publication time.
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