IRDA NEWS:IRDA suggests insurers to expand foreign operations

The Insurance Regulatory and Development Authority has suggested Indian insurers to spread their business abroad; as foreign insurers do.

 

During the speech at a seminar organized by the Indian Chamber of Commerce, Mr. Sudhin Roy Chowdhury, Member (life) of IRDA said, “If foreign companies can come to India in a big way, why can’t we expand our wings abroad? Look at (German insurer) Allianz. Around 60 per cent of their business is from markets outside Germany.”

Further, Mr. Chowdhury said if foreign insurers could come India, form joint-ventures with Indian insurers then why don’t the Indian insurers look at the opportunities abroad? They should also walk out to form joint-ventures in overseas to expand their business.

According to the present law, a foreign partner cannot invest more than 26% in Indian insurance companies. However, there is a bill which permits foreign investors to invest up to 49% in Indian insurance sector is likely to be presented. Government is all set to pass the bill to give a push to Indian insurance sector. And, according to the latest updates, senior BJP leader and former finance minister Mr.Yashwant Sinha has given an indication to support the bill. Once the bill is passed, foreign investors can be able to invest up to 49% in Indian insurance market.

 

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