GIFT City’s International Financial Services Centre (IFSC) is consolidating its position as a regional reinsurance hub, drawing fresh applications from major players in Saudi Arabia, the United Arab Emirates and Kazakhstan as reinsurance premiums written from the centre have surged four‑fold. According to the original report, gross written premium at the IFSC rose to $199.52 million in Q2 of FY25–26 from $51.75 million in the same quarter a year earlier, a jump industry participants say reflects widened participation by global reinsurers and expanding cross‑border capacity. [1]

“Foreign reinsurance entities have been the hottest entrants in GIFT IFSC. All of them are foreign because they are the CBRs (Cross Border Reinsurers) who are sitting outside the country. A lot of reinsurance capacity is being built here. There are about nine reinsurance companies in GIFT City and another 10 entities are in advanced stages of application,” K Rajaraman, Chairperson of the International Financial Services Authority (IFSCA), told BusinessLine, underlining the pace of new entries. The authority has authorised 22 insurance and reinsurance entities to operate in the IFSC through the second quarter of FY26, supported by a growing intermediary ecosystem. [1][2]

Among the new applicants is Saudi Reinsurance Company, the only dedicated reinsurer based in Saudi Arabia, which operates across more than 40 markets and has recently strengthened its capital base and credit ratings, the company says. The Abu Dhabi National Insurance Company PJSC (ADNIC) has also applied to set up in the IFSC; ADNIC is a long‑established UAE insurer with underwriting strength in energy, marine, engineering and financial lines. Kazakhstan’s Eurasia Insurance Company JSC, a rare CIS member of the International Underwriting Association in London, has similarly sought approval to establish a reinsurance branch within the IFSC. These applications, the original report notes, are part of a broader trend of Middle Eastern and Central Asian insurers seeking a regulated IFSC platform to serve regional cedants. [1][2][5]

The wave of new interest follows earlier foreign entrants that have already taken up IFSC licences. Allianz Partners announced the launch of its IFSC Insurance Office (an IIO reinsurance branch) in GIFT City, describing the move as part of a strategic expansion to serve B2B reinsurance and non‑life markets in India from a dedicated SEZ base. HDFC International Life & Re set up an overseas branch in GIFT City in 2023 to offer US‑denominated life and health reinsurance solutions, illustrating that both European and Indian insurer groups see strategic value in using the IFSC to access local and expatriate markets. Korean Re has also secured IFSC approval and is planning a branch expected to begin operations in April 2026 to deepen engagement with Asian cedants. These openings signal a diversification of supply into areas such as cyber and speciality risks where domestic capacity remains limited. [3][4][7]

“The Cross Border Reinsurance companies used to write from other locations like Zurich, Frankfurt or the US. The total outbound reinsurance from India is to the tune of $5.4 billion per annum. Now a lot of reinsurance capacity is being built here. The business is scaling up and more insurance brokers are coming and negotiating deals. In a few years from now, Indian insurers may not have to go outside. In fact, reinsurance capacities are required in new areas like cyber security. These are areas where India does not have enough reinsurance capacity,” Rajaraman added to BusinessLine, framing the IFSC’s growth as part of a deliberate attempt to retain more premium within a regulated, cross‑border framework. [1]

Regulators and market participants say the IFSC’s appeal rests on a combination of factors: a specialised cross‑border regulatory regime, SEZ fiscal benefits, proximity to a rapidly expanding insurance market and a growing cluster of brokers and service providers. Industry announcements and regulatory filings indicate a steady pipeline of approvals from Gulf and Asian reinsurers, and initial approvals elsewhere , for example, Doha Insurance Group’s preliminary sign‑off to open an international insurance office in GIFT City , point to sustained interest from the Middle East. [3][6]

While market data highlight rapid growth, industry observers caution that building a deep, diversified reinsurance marketplace will require sustained capital inflows and active participation across treaty lines. The company statements and regulatory approvals to date show an expanding roster of foreign reinsurers , from multinational groups to regionally focused players , seeking to use GIFT IFSC as a hub, but the eventual impact on India’s net outbound reinsurance balance and capacity for emerging risks will become clearer only as these branches begin underwriting at scale. [1][3][4][5][7]

##Reference Map:

  • [1] (The Hindu BusinessLine) - Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 5, Paragraph 7
  • [2] (NewsOnProjects) - Paragraph 2, Paragraph 3
  • [3] (Allianz Partners press release) - Paragraph 4, Paragraph 6, Paragraph 7
  • [4] (Wikipedia: HDFC International Life and Re) - Paragraph 4, Paragraph 7
  • [5] (Saudi Exchange / Saudi Re company filing) - Paragraph 3, Paragraph 7
  • [6] (FTUSA Revue) - Paragraph 6
  • [7] (Insurance Business Magazine) - Paragraph 4, Paragraph 7

Source: Noah Wire Services