MS&AD Insurance Group

India’s proposal to allow more foreign investment in its $41 billion insurance business provides a lifeline for an industry starved  of capital and squeezed by regulation – but it may not pass parliament and it may not be enough.

India’s insurance business was full of promise when it was thrown open to competition in 2000, but has instead been brought to  its knees by losses, regulatory change, uncertainty and a sharp slowdown in economic growth.