IFSCA's Role Stressed In Making India A Global Reinsurance Hub
As per the latest government data, insurance penetration stood at 3.7 per cent, with life insurance at 2.7 per cent and non-life at 1 per cent, while insurance density increased marginally to $97, indicating significant untapped market potential
New Delhi: Financial services secretary M Nagaraju on Monday highlighted the role of International Financial Services Centres Authority (IFSCA) in advancing India’s aspiration to become a global reinsurance hub and encouraged Indian insurers and reinsurers to tap global opportunities through GIFT City.
As per the finance ministry statement, Nagaraju said India stands at the cusp of transformative growth in its reinsurance sector. “Insurance and reinsurance were emphasised as crucial in driving India towards its economic objectives, particularly as the country strengthens its role in the global economy,” he said while speaking at the IFSC-IRDAI-GIFT City Global Reinsurance Summit in Mumbai.
As per the latest government data, insurance penetration stood at 3.7 per cent, with life insurance at 2.7 per cent and non-life at 1 per cent, while insurance density increased marginally to $97, indicating significant untapped market potential. However, a Swiss-Re report said that India remained the 10th largest insurance market globally by nominal premium volumes in 2024, with a market share of 1.8 per cent.
The secretary also indicated that the Indian insurance sector, an integral part of the financial system, 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 FY 2024-25, the sector issued 41.84 crore policies, collected premiums of Rs 11.93 lakh crore, paid claims of Rs 8.36 lakh crore, and reported assets under management of Rs 74.44 lakh crore as on March 31, 2025. The total reinsurance market in India stood at Rs 1.12 lakh crore in 2024-25.
The ministry also said that India’s insurance and reinsurance sectors were noted to be on an upward trajectory, with Indian insurers and reinsurers encouraged to tap global opportunities through GIFT City and to work collaboratively with all stakeholders towards achieving Insurance for All by 2047.
