India’s reinsurance sector is poised for significant growth in 2026, fueled by government initiatives, the issuance of new insurance licences, and the emergence of GIFT City as a pioneering financial hub, according to Prateek Singhal, Executive President & Head of Reinsurance, Howden India.
Over the past year, several global and domestic reinsurers have announced plans to establish offices in GIFT City, signalling their confidence in India’s regulatory reforms and growth potential.
The city’s status as an International Financial Services Centre (IFSC) offers firms a competitive environment with tax incentives, streamlined compliance procedures, and enhanced access to international capital.
Just this year, Peak Re, Singapore Re, Everest Re, Starr, and Korean Re were among the companies granted licenses, as they seek to strengthen their presence in the Asia-Pacific market.
With this in mind, Howden’s Singhal told Reinsurance News that India’s reinsurance sector is “on the verge of a surge” in 2026.
“This is mainly driven by the government’s ambitious National Infrastructure Pipeline (NIP). Huge capital expenditure across Roads, Energy, Railways, and Urban Development, alongside an estimated $80 billion in private capex, leads to complex risks, which in turn require significant insurance capacity,” Singhal explained.
He continued, “With over 30 non-life and 24 life insurers, and new licenses in the pipeline, gross direct premiums have increased by more than 20% in early FY26, paving the way for a spike in reinsurance demand.”
Singhal reiterated that GIFT City is rapidly emerging as a pioneering hub, highlighting that over 10 global reinsurers are already licensed while more than 20 others are actively seeking entry, underscoring strong confidence in India’s long-term growth potential.
“While general market conditions remain soft due to increased capacity, certain sectors such as Property & Infra, Liability & Special Risks, Aviation, and Marine Hull show promising trends. Innovative solutions like Parametric covers for natural calamities and Surety Bonds for infrastructure are redefining risk participation and expanding the reinsurer’s role in India’s growing landscape,” Singhal concluded.
As India’s reinsurance market prepares for this anticipated growth, its clear that industry observers foresee the coming years delivering not only expanded capacity but also heightened innovation and closer collaboration between domestic and international players.
With supportive regulatory frameworks, rising infrastructure investments, and the strategic advantages offered by GIFT City, India is now well-positioned to establish itself as a prominent hub in the global reinsurance landscape.
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