GIFT City draws reinsurers as India offers 10-year tax holiday

The zone also provides exemptions on capital gains to attract offshore insurance capital.

Many international reinsurers are seeking to operate in India’s Gujarat International Finance Tec City (GIFT City), according to Reuters.

These insurers include Lloyd’s of London, South Korea’s Samsung Re, Kenya’s Kenya Re and Spain’s Mapfre Re, according to sources cited by the news agency. 

These firms would join more than a dozen reinsurers that have already established operations in GIFT City, with approvals expected later this year.

GIFT City provides incentives such as a 10-year tax holiday and exemptions on capital gains. 

The Indian government aims to position the district as a global financial hub on par with Singapore and Dubai.

The country’s reinsurance market is currently dominated by Swiss Re, Munich Re, GIC Re and private players, with growth expected following regulatory changes designed to expand insurance coverage nationwide.