Prateek Singhal, executive chairman and head of reinsurance at Howden India, said India’s reinsurance industry is expected to grow significantly in 2026, driven by government initiatives, issuance of new insurance licenses and GIFT City emerging as a pioneer financial hub.
This will come as no surprise to regular readers of Reinsurance News, who have seen our extensive coverage of the region’s changing landscape.
Last year, several global and domestic reinsurers announced plans to open offices in GIFT City, demonstrating their confidence in India’s regulatory reforms and growth potential.
The city’s status as an International Financial Services Center (IFSC) provides businesses with a competitive environment with tax benefits, simplified compliance procedures and greater access to international capital.
Just this year, Peak Re, Singapore Re, Everest Re, Starr Re and Korean Re were all licensed to strengthen their presence in the Asia-Pacific market.
With this in mind, Howden’s Singhal told Reinsurance News that India’s reinsurance industry will be “on the verge of a surge” in 2026.
“This is largely driven by the government’s ambitious National Infrastructure Pipeline (NIP). Huge capital expenditure in roads, energy, rail and urban development, coupled with an estimated $80 billion in private capital expenditure, has resulted in complex risks, which in turn requires strong insurance capabilities,” explained Singhal.
He continued, “With the emergence of more than 30 non-life companies and 24 life companies, as well as applications for new licenses, total direct premiums increased by more than 20% at the beginning of FY26, paving the way for a surge in reinsurance demand.”
Singhal reiterated that GIFT City is rapidly emerging as a pioneer hub and highlighted that over 10 global reinsurers have been licensed while over 20 more are actively seeking entry, underscoring the strong confidence in India’s long-term growth potential.
Singhal concluded, “While overall market conditions remain soft due to increasing capacity, certain sectors such as property & infrastructure, liability & special risks, aviation and ship hull are showing promising trends. Innovative solutions such as natural disaster parametric insurance and infrastructure covered bonds are redefining risk participation and expanding the role of reinsurers in India’s evolving landscape.”
As the Indian reinsurance market gears up for this expected growth, industry observers clearly expect the coming years to not only expand capacity but also intensify innovation and strengthen collaboration between domestic and international players.
With a supportive regulatory framework, increasing infrastructure investment and the strategic advantages offered by GIFT City, India is now well-positioned to establish itself as a key hub in the global reinsurance sector.
