9 foreign reinsurers in talks to enter GIFT City through IIO route

As many as nine new foreign reinsurers, including Saudi Re, Kuwait Re, African Re and Abu Dhabi National Insurance Company (ADNIC), among others, are in advanced stages to set up their IFSC insurance offices (IIOs) in GIFT City, according to sources aware of the development. 

There are also 10 reinsurers who are in their preliminary stages of discussion. 

Recently, Seoul-based reinsurer Korean Reinsurance Company (Korean Re) received approval to set up shop in GIFT City in November 2025, to operate its IIO. 

In response to Business Standard's query, Saudi Re said, “India’s insurance sector continues its upward trajectory and remains a key strategic market, where we have maintained a strong presence for over a decade. We are keen to pursue opportunities that enable us to serve our clients and partners in the Indian market and reinforce our long-term commitment.” 

There is a growing interest among foreign reinsurers to operate their IIOs in GIFT City due to easier compliance norms and operational flexibility offered there, compared to the mainland route. 

The revised cross border reinsurer (CBR) norms are also nudging reinsurers to the route, experts said. 

Currently, there are nine reinsurance companies in GIFT City, including Singapore Re, Peak Re, Everest Re and Doha Insurance, among others. Recently, at a CII event, Sandeep Dadia, chief executive officer (CEO) & country head at Lockton India, also said that there are many reinsurers in the country. And, 20 new ones are likely to enter through GIFT City.  

“There is growing interest among foreign reinsurers to enter the Indian market due to improving regulation. Although companies are exploring both the foreign reinsurance branch (FRB) route and GIFT City, there is an inclination towards GIFT City due to the simpler process. Interest has also increased post the announcement of change in foreign direct investment (FDI) norms, announcement of ‘Insurance for All by 2047’ and revised CBR norms,” said Debashish Banerjee, partner, Deloitte India. 

According to the IFSCA Bulletin, in Q2 FY25–26, re-insurance business at the IFSC recorded a significant rise, with gross written premium reaching $199.52 million, up sharply from $37.97 million in the previous quarter. This substantial increase indicates a strong rebound in reinsurance activity and expanding participation of global reinsurers within the IFSC.  

In its 2024 circular, the Insurance Regulatory and Development Authority of India (Irdai) mandated that CBRs accepting reinsurance business from India must maintain collateral within the country — an initiative aimed at strengthening the domestic reinsurance ecosystem. According to experts, this requirement has prompted increased interest in entering through GIFT City, which offers comparatively simpler norms than the mainland. 

“There is a push and pull factor for the Indian reinsurance segment. There are a lot of geopolitical uncertainties and challenges globally. Secondly, India is seeing an enormous amount of capital infusion in the infrastructure sector and there is a need for insurance there and reinsurance is an off-shoot of insurance. For insurers infra, property and engineering are one of the most profitable lines and need reinsurance support,” said Prateek Singhal, head of reinsurance, Howden India. 

“GIFT City offers more capital relief and ‘ease of business’ than the mainland reinsurance norms. The reinsurers need not maintain a separate solvency in GIFT City. They can have the solvency of the homeland. Also, post the CBR regulations, the reinsurers are motivated to move to GIFT City,” Singhal added. 

Irdai has mandated that FRBs other than Lloyd’s have to follow the solvency margin norms of the home regulator. 

IFSCA allows the applicants to have solvency margin as stipulated by its home country regulatory or supervisory authority.

“However, the serious contenders — those planning to stay for a longer time — are considering the FRB route. This is because Gift City is still not mature and rules may change,” Banerjee added. 

Currently, India has 12 FRBs and two domestic reinsurers — state-owned General Insurance Corporation of India (GIC Re) and privately-owned Valueattics Re. 

Gaining traction

• Ten more reinsurers in preliminary stages of discussion to set up IIOs
• Easy compliance and operational flexibility are prompting foreign insurers to go the GIFT City route
• Currently, there are nine reinsurance companies in GIFT City
• According to IFSCA Bulletin, re-insurance business at the IFSC recorded a significant rise in Q2FY26