Overview: GIFT City could see another wave of international reinsurance players in Financial Year 2027, with around 15 reinsurers expected to seek entry into GIFT IFSC. The development comes as the centre’s insurance business expands, with 41 International Financial Services Centre Insurance Offices (IIOs) already operating, including 26 reinsurers from 18 countries. For businesses and financial-services professionals, the development highlights the growing role of GIFT IFSC as a base for reinsurance and other cross-border financial activities.
Global Reinsurers Look to GIFT IFSC
Around 15 reinsurers are expected to apply for GIFT IFSC offices during Financial Year 2027, according to a Mint report, citing International Financial Services Centres Authority (IFSCA) Chairperson K. Rajaraman. The prospective entrants are looking to tap India’s estimated ₹1.12 trillion reinsurance market.
GIFT City currently has 41 International Financial Services Centre Insurance Offices (IIOs), including 26 reinsurers from 18 countries. Applications from five direct insurers are also under process, while two more direct insurers are expected to apply during FY27. Some foreign applicants may require approval from their home-country regulators before receiving in-principle approval in India.
Why GIFT IFSC Is Attracting Reinsurers
GIFT IFSC offers an international financial-services framework for insurance and reinsurance business, along with a favourable position in India’s reinsurance placement framework.
An IIO permitted to undertake reinsurance can be placed in Category 2,on a par with Foreign Reinsurer Branches, when it meets the applicable investment condition.
For reinsurance accepted from Indian insurers, this includes investing 100% of retained premium arising from domestic insurers in the DTA. An IIO that does n otmake this investment falls under Category 3.
GIFT City’s wider international profile is also reflected in its position among global financial centres.
Reinsurance Business Is Scaling
The growth is already visible in business volumes. The gross premiums underwritten by IIOs, suggest the report, rose nearly fourfold to about $649 million in FY26, from approximately $162 million in FY25.
IFSCA expects the next phase to involve greater local underwriting capability, larger teams and higher retention of risk, with GIFT IFSC increasingly used as a base for international business. Proposed frameworks for insurance-linked securities and other products could further broaden the ecosystem.
What It Means for Businesses
The expansion creates a wider opportunity for insurance businesses, financial-services companies and professional advisers. However, setting up in GIFT IFSC involves more than incorporation. The proposed activity, regulatory approval, capital requirements, tax treatment, governance and ongoing compliance must be assessed before choosing the appropriate structure.
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Setindiabiz helps businesses evaluate and establish their presence in GIFT IFSC, including entity structuring, incorporation, regulatory documentation and ongoing compliance. Our support covers the proposed business activity, applicable approvals, capital and tax considerations and recurring regulatory requirements.
FAQs
How many reinsurers may enter GIFT IFSC in FY27?
Around 15 reinsurers are expected to apply, according to a report.
How many reinsurers are already in GIFT City?
There are currently 26 reinsurers from 18 countries among 41 IIOs
Why is GIFT IFSC relevant to reinsurers?
Its regulatory framework and position in India’s reinsurance placement order make it an important base for international reinsurance business.
What should businesses assess before setting up in GIFT IFSC?
The proposed activity, licensing requirements, capital, tax, governance and ongoing regulatory compliance should be assessed before establishing the structure.
In This Article
Author Bio
Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.
