Peak Reinsurance Company Limited (Peak Re), a Hong Kong-based global reinsurer, has been granted a reinsurance branch license to operate as an IFSC Insurance Office (IIO) in India’s Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC). The license was issued by the International Financial Services Centres Authority (IFSCA) on Feb. 20, a news release said.
The newly established IIO will function as a Category 2 reinsurer under India’s “Order of Preference” regulations. With the license, the branch is authorized to conduct reinsurance business across property and casualty, as well as life and health insurance sectors.
Peak Re considers India a key market and sees the licence as an opportunity to strengthen its presence in the region. The company aims to contribute to the modernization of the reinsurance sector while supporting the needs of middle-class communities across Asia.
“Establishing a IFSCA Branch reinforces our unwavering commitment to the India market and underscores our strategic focus on meeting local needs and deepening our engagement with the local community,” the company said.
Peak Re also said that Sudhir Salian, its managing director and head of India, has been appointed to oversee the development and operations of the IFSCA Branch.
The development comes at a time when India’s insurance sector is experiencing significant growth and transformation. According to a report from Mint, recent market trends show that the Indian insurance industry has been growing at a compound annual growth rate (CAGR) of 17% over the past two decades, with projections estimating a market size of US$222 billion by 2026. Additionally, the Swiss Re Institute forecasts that India will lead the G20 nations with an average annual insurance premium growth of 7.1% between 2024 and 2029.
The Indian government has also proposed increasing the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%, a move aimed at attracting global capital and fostering innovation.
Despite the positive outlook, compliance remains a challenge, with insurance companies navigating thousands of regulatory requirements.
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