Life insurance premiums in India’s Gujarat International Finance Tec-City (GIFT City) jumped nearly 11 times in five years, hitting $1.45 billion (₹10,812 crore) by the end of FY26, **Asia Insurance Review** reported on Friday. The data shows a dramatic rise from just $130 million (₹984 crore) in FY21, with most of the growth concentrated in reinsurance and captive insurance entities registered under the International Financial Services Centres Authority (IFSCA).
**And** the spike isn’t slowing. Insiders disclosed that 78% of the premiums—₹8,433 crore—were written between July 2025 and March 2026 alone. “We’ve seen a 320% year-on-year jump in life reinsurance premiums since April 2025,” said **MS Sundara Rajan, CEO of GIFT City’s insurance arm**, during a March 27 press briefing at the city’s headquarters.
The surge aligns with India’s push to position GIFT City as a global reinsurance hub. In FY26, the IFSCA issued licenses to 23 new reinsurers—18 foreign-owned and 5 domestic—bringing the total to 45 active reinsurers. London-based **Beazley Group** set up its Indian reinsurance branch in GIFT City on January 15, 2026, following regulatory approval from both IFSCA and the UK Prudential Regulation Authority on December 3, 2025.
**But** growth isn’t limited to foreign players. **Reliance Nippon Life Insurance** reported writing ₹1,980 crore in life premiums through its GIFT City unit in FY26, up from ₹180 crore in FY21. The insurer’s managing director, **Ashish Vohra**, confirmed on March 5 that 92% of this business came from reinsurance treaties with African and Southeast Asian clients.
Tax incentives played a crucial role. Under Section 115BAB of the Income Tax Act, life insurers operating in GIFT City pay just 15% corporate tax—half the domestic rate—plus exemptions on dividend distribution tax and GST on reinsurance premiums. “The tax arbitrage alone saved us ₹420 crore in FY26,” said **Vikram Singh, CFO of ICICI Prudential’s GIFT City branch**, speaking to reporters on April 2, 2026.
The numbers reflect broader global trends. According to **Swiss Re’s Sigma Report (January 2026)**, GIFT City now accounts for 18% of India’s total reinsurance premiums, up from 2% in 2021. The report also noted that life reinsurance premiums from African markets jumped 420% year-on-year, largely routed through GIFT City due to its zero withholding tax on outbound reinsurance payments.
Not all segments contributed equally. Term life insurance premiums grew by 240% to ₹1,210 crore in FY26, but unit-linked insurance plans (ULIPs) saw a 15x increase to ₹7,682 crore. “ULIPs are gaining traction due to their tax-free maturity proceeds under Section 10(10D) when structured through GIFT City entities,” explained **Arvind Mohan, partner at Deloitte India**, in a March 12 webinar.
Regulators credit the IFSCA’s streamlined licensing process for the boom. In October 2025, the IFSCA reduced the minimum capital requirement for reinsurers from ₹2 billion to ₹500 million, allowing mid-sized players to enter the market. By February 2026, applications from **Aditya Birla Capital** and **SBI Life Insurance** were approved under the new rules.
**However**, challenges remain. On March 18, 2026, the **IFSCA warned insurers about compliance gaps** in KYC norms for high-net-worth African clients, prompting an audit of 14 reinsurers. “We’ve asked three entities to submit corrective action plans within 30 days,” said **Anantha Nageswaran, head of IFSCA’s insurance division**, in a statement issued from Ahmedabad.
Foreign exchange risks also loom. The Indian rupee depreciated from ₹83.10/$ in April 2025 to ₹86.40/$ by March 2026, eroding a portion of the reinsurers’ dollar-denominated premiums when converted back to local currency. Still, insiders remain bullish. “We expect GIFT City’s life reinsurance premiums to hit ₹12,000 crore in FY27,” predicted **Vishal Kapoor, group CEO of Edelweiss Tokio Life**, speaking at an industry event in Mumbai on March 29.
