GIFT City to help India become reinsurance hub

The Gujarat International Finance Tec-City (GIFT) will enable India to become a global reinsurance hub, Ramakant Jha, managing director and group chief executive officer, GIFT City, said. Speaking at a conference by Asia Insurance Post, he said insurers and reinsurers would be able to offer foreign currency policies from India.

"We already have large companies like General Insurance Corporation of India setting up presence at GIFT City. Further, private insurers are also setting up offices here due to the business opportunity there," said Jha.

GIFT is conceptualised as a global Financial and IT Services hub, a first of its kind in India, designed to be at or above par with globally bench-marked financial centres such as Shinjuku, Tokyo, Lujiazui, Shanghai, La Defense, Paris, London Dockyards etc. GIFT Master Plan facilitates Multi Services SEZ with IFSC (International Financial Services Centre) status, Domestic Finance Centre and associated Social infrastructure.

Insurance, Assurance and Reinsurance, the areas of business opportunities include life and non-life insurance business, assurance companies, captive insurance and reinsurance and related operations.

Jha added that now that the insurance regulator has also made enabling provisions for companies to enter the SEZ, more insurers will follow suit. GIFT CIty is India's International Financial Service Centre.

Insurance Regulatory and Development Authority of India (IRDAI) has brought out the IRDAI International Financial Service Centre Guidelines, 2015.

According to these guidelines, an applicant can set up an IFSC Insurance Office (IIO) in the Special Economic Zone (SEZ) to carry on reinsurance business.

The regulator said these insurers or reinsurers can accept reinsurance business of all classes of business within the SEZ and from outside the country. They can also accept re-insurance business from the insurers operating in the DTA in accordance with the Irdai regulations on reinsurance.

An applicant being an Indian insurer may (except a statutory body) also establish an IIO to transact specified Direct Insurance Business within the SEZ. However, the same IIO granted Certificate of Registration may also transact specified Direct Insurance Business.