Some of the world’s biggest
reinsurers, including Lloyd’s of London, are seeking Indian
regulatory approval to operate in a low-tax city set up in the
prime minister’s home state to try to rival other international
financial hubs, two sources said.
The global companies, which also include South Korea’s
Samsung Re, Kenya Re and Spain’s Mapfre Re, will join more than
a dozen global reinsurers from Europe, the Middle East and Asia
that are turning to the new city to gain access to India’s
$129.78 billion insurance market, estimated by the industry to
be the tenth largest in the world.
The two sources, who spoke on condition of anonymity because
they were not authorised to speak to the press, said the
companies were expected to seek approval this year.
Email queries sent to Mapfre Re, Samsung Re and Kenya Re were
not answered. A Lloyd’s of London spokesperson declined to
comment. The companies’ plans to set up operations in the
Gujarat International Finance Tec-City, or GIFT City, have not
been previously reported.
The city offers businesses favourable tax treatment, such as
a 10-year tax holiday and exemption from capital gains.
The government has said it hopes it will rival Singapore and
Dubai as an international financial centre.
India’s reinsurance market is currently dominated by Swiss Re
and Munich Re, as well as private firms and the government-owned
GIC Re that is widely expected to grow after the government
introduced reforms to deepen India’s insurance penetration.
Saudi Re and others have received approval
A few large reinsurers have received approvals over the last
year to begin operating in GIFT City. These include Saudi Re,
Korean Re, Peak Re, Kuwait Re, Abu Dhabi National Insurance and
Kazakh-based Eurasia Insurance Company JSC, according to
regulatory officials and company statements.
Saudi Re earlier this week opened its GIFT City branch, its
second in Asia after Malaysia.
Korean Re has said its expansion reflected its commitment to
India’s high growth insurance sector, while Hong Kong-based Peak
Re, which received a licence in March 2025, said it plans to
offer life and non-life insurance.
About 14 global reinsurers operate from GIFT City, managing
an annualised $700–800 million in premiums, public disclosures
show.
The number of reinsurers is expected to increase to at least
20 by the end of March 2026, two regulatory officials said,
declining to be identified as final approvals are pending.
They said the international reinsurers sought to offer
products that are relatively underdeveloped in India, including
surety bonds, parametric insurance, marine and shipping cover,
cyber risk and health reinsurance.
Apart from favourable tax treatment, the international
reinsurers operating from GIFT City can follow the solvency
norms of their home regulators rather than those prescribed by
India.
Indian reinsurers are required to maintain a minimum
solvency ratio of 150% to ensure they can settle claims even in
extreme circumstances. Global requirements tend to be lower.
“With a globally aligned regulatory framework and enabling
reforms, we are seeing growing interest from global reinsurers
in the GIFT IFSC opportunity,” Dipesh Shah, executive director
at the regulator for financial services at GIFT City told
Reuters.
He declined to share details on reinsurers seeking to set up
operations in the city.
Published on January 30, 2026
