MUMBAI: 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.
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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.
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