GIFT City insurance market jumps 11-fold in 5 years

Premium volume rose from $102m in 2020 to more than $1.2b by 2025.

India’s Gujarat International Finance Tec-City (GIFT City) saw its insurance and reinsurance market expand from $102m in 2020 to more than $1.2b by 2025, marking an over 11-fold increase in five years.

The growth was influenced by a rise in the number of insurers and reinsurers operating within the International Financial Services Centre (IFSC). 

Insurance Offices (IIOs) have increased from eight in the early stages to around 24, reflecting a shift towards a more underwriting-led market.

Several global and domestic players entered the market in the last financial year, including Allianz, Generali, Starr International Insurance, Abu Dhabi National Insurance Company, Qatar Re, Singapore Re, Doha Re and Lloyd’s.

Domestic firms such as HDFC Life, Max Life Insurance and Niva Bupa also established a presence.

These entrants add to an existing ecosystem that includes GIC Re, ICICI Prudential Life Insurance, Tata AIA Life Insurance, Marsh, Gallagher and JB Boda, creating a mix of global and domestic insurers and intermediaries.

Non-life insurance and reinsurance have driven much of the growth, particularly in trade credit, marine and aviation lines. These segments are closely linked to cross-border trade, infrastructure financing and leasing activity, with insurance increasingly integrated into financial transactions to support risk management and capital flows.

Ankur Mehta, managing director of Guy Carpenter India, said the increase in premium volumes reflects growing participation from global and domestic insurers, as well as rising confidence in GIFT City as a hub for underwriting India-linked risks. 

He added that expanding underwriting capacity is enabling more risks to be managed within India.

Atul Boda, group chairman of J.B. Boda Group, said that regulatory clarity is expected to encourage more reinsurers to establish operations in the centre.