India Poised for Reinsurance Transformation, GIFT City Central to ‘Insurance for All by 2047’: DFS Secretary

Highlighting the scale and strength of India’s insurance sector, Shri Nagaraju said it plays a critical role in risk protection, household savings and long-term infrastructure financing.

Shri M. Nagaraju, Secretary, Department of Financial Services (DFS), today said that India stands at a pivotal moment in the evolution of its insurance and reinsurance sector, with GIFT City IFSC emerging as a strategic engine for global integration and domestic risk capacity building.

Addressing the 3rd Edition of the IFSCA–IRDAI GIFT City Global Reinsurance Summit in Mumbai, the Secretary commended the strong performance of GIFT City IFSC and said the Summit's theme—"Bridging India Today, Insuring India Tomorrow – the India Evolution Roadmap"—closely aligns with the national vision of "Insurance for All by 2047."

Reinsurance as a Pillar of India's Economic Growth

Describing the Summit as a vital convergence platform for global and domestic stakeholders, Shri Nagaraju underlined the growing importance of insurance and reinsurance in supporting India's economic ambitions, especially as the country strengthens its footprint in the global financial ecosystem.

He noted that despite a challenging global economic environment, India has emerged as a resilient global player, with a population of over 1.46 billion, status as the world's largest democracy, and growth projected at 6.6 per cent in 2026, making it the fastest-growing major economy.

Global Insurance Trends and India's Untapped Potential

Citing the Swiss Re Sigma Report No. 02/2025, the Secretary observed that while the global insurance industry performed strongly in 2024, premium growth is now moderating across life and non-life segments due to economic headwinds and policy uncertainty.

As per the report:

• India remained the 10th largest insurance market globally in 2024 by nominal premium volume

• India's global market share stood at 1.8 per cent

• Insurance penetration was 3.7 per cent, with life insurance at 2.7 per cent and non-life at 1 per cent

• Insurance density rose marginally to USD 97, highlighting significant headroom for growth

"These indicators point to a vast, untapped opportunity for insurers and reinsurers operating in India," he said.

Strong Domestic Fundamentals

Highlighting the scale and strength of India's insurance sector, Shri Nagaraju said it plays a critical role in risk protection, household savings and long-term infrastructure financing.

During FY 2024–25, the sector:

• Issued 41.84 crore insurance policies

• Collected premiums worth ₹11.93 lakh crore

• Paid claims amounting to ₹8.36 lakh crore

• Reported assets under management of ₹74.44 lakh crore as on 31 March 2025

The Indian reinsurance market stood at ₹1.12 lakh crore in FY 2024–25, reflecting growing depth and sophistication.

Policy Reforms Powering the Next Phase

The Secretary highlighted a series of policy and regulatory reforms undertaken by the Government and the insurance regulator to expand access, attract capital and strengthen consumer protection:

• FDI limit in insurance raised to 100 per cent

• Registration of a new reinsurer in the previous year

• Enactment of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which:

  • Establishes a Policyholders' Education and Protection Fund

  • Aligns insurance data practices with the Digital Personal Data Protection Act, 2023

  • Enhances IRDAI's regulatory powers

GIFT City's Role as a Global Reinsurance Hub

Concluding his address, Shri Nagaraju emphasised the central role of the International Financial Services Centres Authority (IFSCA) in realising India's ambition to become a Global Reinsurance Hub.

Under the IFSCA Act, 2019, GIFT City IFSC:

• Aligns India's regulatory framework with global best practices

• Regulates IFSC Insurance Offices

• Enables foreign reinsurers to establish branches in India

• Facilitates seamless reinsurance flows across IFSCs, SEZs, domestic tariff areas and overseas markets

He said India's insurance and reinsurance sectors are on a strong upward trajectory and encouraged Indian insurers and reinsurers to leverage GIFT City to access global opportunities, deepen risk capacity and work collaboratively toward achieving "Insurance for All by 2047."