IRDA has permitted foreign insurance and reinsurance companies to open offices at the Gujarat International Finance Tec-City (GIFT) – International Financial Services Centre (IFSC) and accept dollar business. The insurance offices in GIFT can provide cover for those within the IFSC or from other special economic zones (SEZs). They can also sell policies to those in foreign locations and some permitted Indian businesses.
MD & group CEO of GIFT City, Mr. Ajay Pandey mentioned that the move would make India a hub for offshore insurance business as well as international financial services, provided there are business-friendly regulations and a competitive tax regime.
“GIFT-IFSC already hosts three major insurance players — GIC Re, New India & ECGC — and five insurance broking entities. With the business guidelines in place, we are now hopeful that foreign and domestic insurance companies would participate in making GIFT-IFSC a hub for international insurance business,” said Pandey.
