Author: Ashwin Manikandan and Jayshree P Upadhyay
MUMBAI, Jan 29 (Reuters) – Some of the world’s largest reinsurers, including Lloyd’s of London, are seeking approval from Indian regulators to set up operations in a low-tax city in the prime minister’s home town as they try to compete with other international financial hubs, two sources said.
The multinationals, which also include South Korea’s Samsung Re, Kenya Re and Spain’s Mafre Re, will join a dozen global reinsurers from Europe, the Middle East and Asia turning to new cities to tap India’s $129.78 billion insurance market, which is the world’s 10th largest according to industry estimates.
The companies are expected to seek approval this year, said the two sources, who asked not to be identified because they were not authorized to speak to the media.
Email queries sent to Mapfre Re, Samsung Re and Kenya Re went unanswered. A spokesman for Lloyd’s of London declined to comment. There have been no reports that these companies are planning to set up operations in the Gujarat International Financial Technology City (GIFT City).
The city offers favorable tax treatment to businesses, such as a 10-year tax holiday and capital gains exemption.
The government says it hopes to compete with Singapore and Dubai as an international financial center.
India’s reinsurance market, currently dominated by Swiss Re and Munich Re as well as private players and government-owned Government Investment Corporation Re (GIC Re), is widely expected to continue growing after the government introduces reforms to deepen insurance penetration in India.
Saudi Reinsurance and others have been approved
Last year, a number of large reinsurance companies received approval to start operating in GIFT City. These include Saudi Re, Korean Re, Peak Re, Kuwait Re, Abu Dhabi National Insurance and Kazakhstan’s Eurasia Insurance Company JSC, according to regulatory officials and company statements.
Saudi Reinsurance Company opened a GIFT City branch earlier this week, its second branch in Asia after Malaysia.
Korean Re said its expansion reflected its commitment to India’s high-growth insurance industry, while Hong Kong-based Peak Re, which received a license in March 2025, said it planned to offer life and non-life insurance.
Publicly disclosed information shows that there are approximately 14 global reinsurance companies operating in GIFT City, managing annual premiums of US$700-800 million.
The number of reinsurers is expected to increase to at least 20 by the end of March 2026, two regulatory officials said. The company spoke on condition of anonymity because final approval is still pending.
International reinsurers seek to offer products that are relatively underdeveloped in India, including covered bonds, parametric insurance, marine and shipping insurance, cyber risk and health reinsurance, they said.
