This will be Lloyd’s second entry into Indian reinsurance market as it is already present as one of the  foreign reinsurance branches(FRBs) in the country. Currently, it has two syndicates,Markel and Volante, in its India operations

London/GIFT City: In a major development for the Indian reinsurance sector, Lloyd’s of London has decided to venture into the  GIFT  City, India’s sole international finance services centre(IFSC) regulated by  International  Financial Services Authority(IFSCA).

Lloyd’s has made an announcement for its members in London last week about its proposed entry into the GIFT-IFSC. .

Earlier, Korea Re , one of top 10 global reinsurers , had received approvals from IFSCA to set up its operations in the GIFT –IFSC where almost  seven to eight international players have already opened offices this fiscal and many others across the globe keento follow suit soon.

This will be Lloyd’s second entry into Indian reinsurance market as it is already present as one of the  foreign reinsurance branches(FRBs) in the country under the IRDAI’s regulations. Currently, it has two syndicates,Markel and Volante, in its India operations.

Lloyd’s of London is an insurance and reinsurance market, not a single insurance company, and is the world’s leading insurance marketplace. As of late 2024, Lloyd’s of London had 84 syndicates.

Syndicates are groups of members that pool capital to take on insurance risk. The Lloyd’s market is also home to over 50 managing agents

“Lloyd’s is seeking authorization in the Gujarat Finance Tech City(Gift City)an international financial services centre  located in Gujarat. Lloyd’s expects to be authorized  and operational in GIFT City in 2026.Once authorized , Lloyd’s underwriters will be able to operate in GIFT City establishing a service company or appointing a coverholder,’’ said a Lloyd’s announcement for its members in London.

Lloyd’s underwriters will be able to write Indian reinsurance business in line with order of preference regulations and provide (re)insurance products  to other Special  Economic Zones in India, it further said.

In Asia, Lloyd’s has its many syndicates operating in Singapore, Dubai International  Finance City (DIFC) Hong Kong and Sanghai.

The Indian reinsurance market, which is  likely  to hit Rs 1 lakh crore in FY 26, is undergoing structural changes and attracting many new players.

There are three categories of major players who are doing business in the Indian insurance market. They are state owned GIC Re, FRBs and over 280 cross boarder reinsurers (CBRs) registered with the IRDAI.

The Indian FRBs, which have been set up since 2017 by large global reinsurers like Swiss Re, Munich Re, SCOR , Hannover Re and Lloyd’s , have seen  healthy top line as well as bottomline growth.

Since the beginning of this fiscal, the IRDAI had implemented new rules mandating CBRs to keep collaterals for doing Indian business.

This initiative is expected to play a pivotal role in driving the  international players who are now dealing with Indian  business from overseas  market to foray into GIFT-IFSC, which is offering a host of advantages in terms of capital  and taxes  to help positioning India as a burgeoning hub for reinsurance activities.