The role of IFSCA- IRDAI GIFT City in advancing India's aspiration to become a global reinsurance hub is extremely important as India stands at the cusp of transformative growth in the vital sector of reinsurance, according to the Secretary of the government's Department of Financial Services.
The Secretary, Mr M Nagaraju, was speaking at the 3rd IFSCA- IRDAI- GIFT City Global Reinsurance Summit in Mumbai earlier this week.
Mr Nagaraju said, “The summit is a vital platform that brings together key stakeholders from the financial services sector. Insurance and reinsurance are very crucial in driving India towards its economic objectives, particularly as the country strengthens its role in the global economy.
“With a population of more than 1.46bn, India is the world’s largest democracy and, despite challenging global conditions, has emerged as a global player and remains the world’s fastest-growing major economy, with growth projected at 6.6% in 2026.”
He said that the Indian insurance sector is an integral part of the country’s financial system and 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 the financial year 2024–25, the insurance sector issued 418.4m policies, collected premiums of INR119.3bn ($1.32bn), paid claims of INR83.6bn and reported assets under management of INR744.4bn as of 31 March 2025. The total reinsurance market in India stood at INR112bn in 2024–25.
Mr Nagaraju said, “The government and the insurance regulator have enabled policy frameworks and structural reforms to further growth and insurance accessibility. Foreign direct investment in the insurance sector has been raised to 100% and a new domestic reinsurer was registered last year."
He said India’s insurance and reinsurance sectors are on an upward trajectory, with Indian players encouraged to tap global opportunities through GIFT City and to work collaboratively with all stakeholders towards achieving “Insurance for All by 2047”.