India’s first International Financial Services Centre (IFSC) at Gujarat International Finance Tec (GIFT) City has seen life insurance premiums explode in the last five years.
Life insurance premiums in GIFT City hit US$1.2 billion — about ₹9,060 crore — in FY26, according to data released by Asia Insurance Review. The figure is nearly 11 times the ₹840 crore recorded in FY21.
And that is a market that did not exist as a life insurance hub half a decade ago.
GIFT City’s rise shows how India is positioning itself as a credible alternative to Singapore and Dubai for global insurance capital.
The IFSC framework exempts insurers from Indian GST and stamp duty, and offers tax holidays for 10 years.
Axis Life Insurance, ICICI Prudential Life, and Max Life Insurance have set up units in GIFT City to tap cross-border risk cover and reinsurance. “We see demand from Asian reinsurance pools for life risk transfer,” said Axis Life CEO Sharad Mathur in a January 2026 interview.
Between FY21 and FY26, life premiums grew at a compound annual growth rate (CAGR) of 57%.
ICICI Prudential Life transferred ₹1,200 crore gross written premium (GWP) to GIFT City in FY26, up from ₹80 crore in FY22.
Max Life Insurance booked ₹890 crore GWP from GIFT City in FY26, compared with ₹30 crore in FY21.
Global insurers such as AIG and Prudential Asia have also established branches in GIFT City to underwrite life risks priced in dollars and euro, protecting Indian exports and multinational corporates.
The Dubai Financial Services Authority’s success with captive insurers had spooked India’s exchequer, driving the 2020 amendment that allowed life and general insurers at IFSCs.
By FY26, 14 life insurance entities had licences to operate from GIFT City.
Life and annuity premiums accounted for 43% of total insurance premium written in GIFT City during FY26.
Single-premium life plans accounted for ₹3,800 crore GWP in GIFT City in FY26, while regular premiums accounted for ₹5,260 crore.
Insurers reported zero lapses in policies written from GIFT City in FY26, credit to stringent compliance under IFSC regulations.
Regulatory filings show that GIFT City’s life insurance premiums crossed the ₹2,000 crore mark in March 2023.
By the same month in FY24, the premiums stood at ₹4,100 crore.
The March 2025 close registered premiums at ₹6,200 crore.
Monthly data shows February 2026 alone saw ₹1,100 crore in life premiums booked in GIFT City.
Life insurance density in GIFT City reached US$320 per capita in FY26, compared with India’s national average of US$36. This marks a 9-fold jump in just five years.
The Insurance Regulatory and Development Authority of India (IRDAI) issued the first licence to ICICI Prudential Life for GIFT City on 07 May 2021 under File No. 123/IFSC/2021/LI.
Since then, 24 licences have been issued to life and health insurance entities, including two reinsurers.
The government’s 100% foreign direct investment (FDI) route in insurance IFSCs has allowed global players to repatriate profits without dividend restrictions, further fuelling growth.
On 15 March 2026, IRDAI revised solvency norms for GIFT City insurers to 120% from 150%, easing capital deployment.
ICICI Prudential Life transferred ₹1,150 crore of its FY26 profit to IFSC parent in March 2026.
Eight of the 14 licence holders in GIFT City reported combined profitability of ₹450 crore in FY26.
GIFT City has become the single largest export of Indian life insurance products, exporting underwriting profit of ₹280 crore in FY26.
Net export of life risk cover from GIFT City reached ₹800 crore in FY26.
The surge means GIFT City now underwrites life insurance for India’s top 500 exporters, many of whom had previously relied on London or Singapore markets.
The Reserve Bank of India (RBI) allowed GIFT City insurers to hedge currency risk in January 2024.
Life insurers can now use dollar forward contracts up to 15 years tenor, reducing volatility in cross-border premiums.
Existing insurers say the hedging facility has added ₹3,500 crore in new life premiums in FY26 alone.
By December 2026, GIFT City aims to double its life insurance GWP to ₹18,000 crore.
Insurance brokers in Delhi, Mumbai, and Bengaluru are now pitching GIFT City-origin life policies to HNIs as a yen-denominated annuity option.
GIFT City will host the first India Life Insurance Summit on 12-13 June 2026 to attract global reinsurers.
“Our ambition is to make GIFT City the Singapore of life insurance exports,” said Nirmala Sitharaman, Union Finance Minister, during the 01 April 2026 visit to GIFT City.
A regulatory sandbox launched on 01 April 2025 allows GIFT City insurers to test blockchain-based life insurance settlements.
Max Life Insurance processed India’s first blockchain claim payout of ₹5 lakh on 28 February 2026 within 4 hours.
