Deepak Sood, member(Non-Life), Ajay Seth, chairman, IRDAI, Hasmukh Adhia,chairman, GIFT-City,K Rajaraman, chairman, International Financial Services Centres Authority(IFSCA),M Nagaraju, Secretary, Department of Financial Services and Mahipal Reddy, executive director, IFSCA,the 3rd edition of the IFSCA-IRDAI GIFT-City Global Reinsurance Summit (GRS 3.0) 2026 on Monday in Mumbai
Financial Services Secretary M Nagaraju said the IFSCA has a role in advancing India’s aspiration to becoming a global reinsurance hub and encouraged Indian insurers and reinsurers to tap global opportunities through GIFT City
Ajay Seth, chairman,IRDAI, said at about $4 trillion, Indian economy is moving on from the fifth largest global economy to a third place where the risk management capacities are significantly higher, requiring a lot more capacity to be within India
New Delhi:K Rajaraman, chairman, International Financial Services Centres Authority(IFSCA),a unified authority for the development and regulation of financial products and services in the GIFT- IFSC said the regulator is working on a framework which could enable re/insurance companies to set up sidecars in a special purpose insurance framework and standardize economic solutions to attract global distribution capital.
He was addressing the 3rd edition of the IFSCA-IRDAI GIFT-City Global Reinsurance Summit (GRS 3.0) 2026 on Monday in Mumbai.
“`A central objective of the GRS 2026 is the advancement of the insurance-linked securities and tax-cutting bond framework in India, specifically related to IFSCA ,” he said.
In August 2025, a high-level working group had submitted a report to IFSCA outlining the advancements in making India a hub for Cat bonds to bridge the protection gap, highlighted Rajaraman,
Increasingly, the Indian market is characterized by an expanding risk mix that now includes wildfire and cyber threats, previously not considered suitable for many investors,he said
According to him, Health and Personal Accident(PA)is almost 50 per cent of the total gross revenue for direct business in GIFT-IFSC. Other major lines of business include fire, engineering, marine and other commercial lines of business.
“So,the tax framework in IFSC providing a tax holiday and ability to operate in USD ensure that the capital is protected to currency fluctuations, and I am sure that this will certainly offer a good platform for foreign insurances to set up operations in GIFT-IFSC..
Speaking at the event, Financial Services Secretary M Nagaraju said the IFSCA has a role in advancing India’s aspiration to becoming a global reinsurance hub and encouraged Indian insurers and reinsurers to tap global opportunities through GIFT City.
India stands at the cusp of transformative growth in its reinsurance sector.Insurance and reinsurance were emphasised as crucial in driving India towards its economic objectives, particularly as the country strengthens its role in the global economy, he said.
Under the IFSCA Act, 2019, GIFT City IFSC aligns with global counterparts, regulates IFSC Insurance Offices, enables foreign reinsurers to set up branches, harmonises regulations with global standards, and facilitates reinsurance across IFSCs, SEZs, domestic tariff areas, and overseas markets.
The Secretary also indicated that the Indian insurance sector, an integral part of the financial system, plays a significant role in the economy by providing protection against mortality, property and casualty risks, encouraging savings, and providing long-term funds for infrastructure development and other long-gestation projects.
As per a Swiss Re report, India remained the 10th largest insurance market globally by nominal premium volumes in 2024, with a market share of 1.8 per cent.
The Secretary also indicated that the Indian insurance sector, an integral part of the financial system, plays a significant role in the economy by providing protection against mortality, property and casualty risks, encouraging savings, and providing long-term funds for infrastructure development and other long-gestation projects.
During FY 2024–25, the sector issued 41.84 crore policies, collected premiums of ₹11.93 lakh crore, paid claims of ₹8.36 lakh crore, and reported assets under management of ₹74.44 lakh crore as on 31 March 2025. The total reinsurance market in India stood at ₹1.12 lakh crore in 2024–25.
Insurance penetration stood at 3.7 per cent, with life insurance at 2.7 per cent and non-life at 1 per cent, while insurance density increased marginally to USD 97, indicating significant untapped market potential.
Ajay Seth, chairman,IRDAI, said today, at about $4 trillion, Indian economy is moving on from the fifth largest global economy to a third place where the risk management capacities are significantly higher, requiring a lot more capacity to be within India,
“I’m interested in MSME sector, the smaller industry. The big companies, have the ability to move forward, and get the best in the world. But when it comes to the smaller industry, what kind of products can be brought in and then at the back end, what kind of risks mitigation practices can be brought in. So here as a regulator, I would emphasise bringing in not only the underwriting capability, or the capability for risk management, but also bringing in the global best practices, in risk mitigation efforts,” he added.