Nagaraju highlights IFSCA role in making India a global reinsurance hub

India at cusp of transformative growth in reinsurance sector, says Nagaraju

Financial Services Secretary M Nagaraju on Monday highlighted the role of IFSCA in advancing India's aspiration to becoming a global reinsurance hub and encouraged Indian insurers and reinsurers to tap global opportunities through GIFT City.

India stands at the cusp of transformative growth in its reinsurance sector, Nagaraju said speaking at the IFSCIRDAIGIFT City Global Reinsurance Summit in Mumbai, according to a finance ministry statement.

Insurance and reinsurance were emphasised as crucial in driving India towards its economic objectives, particularly as the country strengthens its role in the global economy, he said.

As per a Swiss Re report, India remained the 10th largest insurance market globally by nominal premium volumes in 2024, with a market share of 1.8 per cent.

 

Insurance penetration stood at 3.7 per cent, with life insurance at 2.7 per cent and non-life at 1 per cent, while insurance density increased marginally to USD 97, indicating significant untapped market potential.

The Secretary also indicated that the Indian insurance sector, an integral part of the financial system, plays a significant role in the economy by providing protection against mortality, property and casualty risks, encouraging savings, and providing long-term funds for infrastructure development and other long-gestation projects.

During FY 202425, the sector issued 41.84 crore policies, collected premiums of Rs 11.93 lakh crore, paid claims of Rs 8.36 lakh crore, and reported assets under management of Rs 74.44 lakh crore as on March 31, 2025. The total reinsurance market in India stood at Rs 1.12 lakh crore in 202425.

The government and the insurance regulator have enabled policy frameworks and structural reforms to further growth and insurance accessibility. Foreign Direct Investment in the insurance sector has been raised to 100 per cent, a new reinsurer was registered last year.

Besides, Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 provides for the formation of a Policyholders' Education and Protection Fund, aligns data protection with the Digital Personal Data Protection Act, 2023, and enhances IRDAI's regulatory powers.

The Secretary also highlighted the role of International Financial Services Centres Authority (IFSCA) in advancing India's aspiration to become a Global Reinsurance Hub.

Under the IFSCA Act, 2019, GIFT City IFSC aligns with global counterparts, regulates IFSC Insurance Offices, enables foreign reinsurers to set up branches, harmonises regulations with global standards, and facilitates reinsurance across IFSCs, SEZs, domestic tariff areas, and overseas markets.

India's insurance and reinsurance sectors were noted to be on an upward trajectory, with Indian insurers and reinsurers encouraged to tap global opportunities through GIFT City and to work collaboratively with all stakeholders towards achieving 'Insurance for All by 2047', the ministry added.

The IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centres in GIFT City.