Category — Insurance

French Companies to Invest $5 Billion in the Indian Insurance Industry

 At an event organized by the French embassy and the Federation of Indian Chambers of Commerce and Industry, France’s ambassador to India Francois Richier said that France would invest $5 billion in India’s insurance business. “When you compare the share of French FDI (foreign direct investment), India receives 6% whereas China receives 7% as of 2014. This shows that while China has GDP four times greater than India, the French investment is roughly the same. There is far more attraction to India than China due to the large market, wonderful workforce and cultural connection,” the French ambassador said.

Prime Minister Modi’s visit to France from April 9 – 12 offers “a unique opportunity to promote market India create a huge awareness about India,” he added. Amitabh Kant, secretary, Department of Industrial Policy and Promotion noted, “As India advances, one of the key lessons to learn from France is the process of urbanization,” adding 700 million people would be living in cities in the next five decades, reported LiveMint.

March 24, 2015   No Comments

Insurance Broker Willis Group To Set Up India JV

Global risk adviser, insurance and reinsurance broker Willis Group Holdings, will purchase a 49% stake in IRDAI licensed broker Almondz Insurance Brokers Private Limited. Almondz has  300 associates in nine offices in India.  Once regulatory approvals are sanctioned and the deal is closed, Willis will be able to offer both insurance and reinsurance services in the Indian market since Almondz has a wholly owned subsidiary engaged in reinsurance brokerage services.

Adam Garrard, Regional CEO of Willis Asia, said, “We are excited about the prospect of continued growth and development in the Indian insurance sector. “This joint venture will allow us to fully participate in this dynamic market, whilst enabling us to provide our global clients with the levels of service and expertise that they expect from Willis’s operations around the world.”

February 25, 2015   No Comments

India’s State-Run Reinsurer May Offer Nuclear Liability Coverage

India is working to set up an insurance pool to indemnify global nuclear suppliers against liability in the case of a nuclear accident, in a bid to resolve concerns of suppliers over exposure to risk.

The 2010 nuclear liability law discouraged Western companies and strained U.S.-India relations as companies said that the law deviated from international standards that put the responsibility on the operator to ensure safety. Even Indian suppliers hesitated  to sell equipment until the law was amended or they could be sure they were indemnified against any liabilities. “We are working fast to address the concerns of suppliers. We are working on a solution with the insurance companies,” R. K. Sinha, chairman of the Indian Atomic Energy Commission, told Reuters.

State-run reinsurer GIC Re is working on a proposal to build a “nuclear insurance pool” that would indemnify the third-party suppliers against liabilities they would face in the case of an accident, where either the contracted companies bought the insurance and recovered the cost by charging more for their services, or the state-run Nuclear Power Corporation of India (NPCIL) would take out insurance on behalf of suppliers.

Sinha said New Delhi believed the insurance plan was the best option given how tricky changing the law would prove, and that the proposal should be ready within the next two months.

December 21, 2014   No Comments

“American investors want to be part of the Indian growth story…” – CSIS

Richard M. Rossow, Senior Fellow at the Center for Strategic and International Studies, Washington DC, where he occupies the Wadhwani Chair in US-India Policy Studies, delivered a talk on ‘US-India Economic Ties: The Next Ten Years’ at the ICFAI University, Hyderabad.

According to him, with further simplification of investment policies that is expected from the new government, American investors would find India even more attractive as an investment destination. Three areas which are likely to see significant growth in US-India partnership are civil aviation, defense and insurance sectors, which were, incidentally, opened up for foreign direct investment recently.

Rossow pointed out that it is very rarely that the voices from Washington, whether they are policy hawks, investors or strategy experts, speak in one voice and it is happening now. The roll out of Goods and Service Tax, simplifying of labor laws and reforms in land acquisition policies are three significant developments that global investors are awaiting in India. Anything else that improves the ease of doing business in India would significantly advance the economic ties between the two nations.

Specifically, while India-watchers are aware of the challenges in moving key legislation through the Rajya Sabha, the upper house of parliament, at this point of time, the investor community at large still has placed great hopes on significant progress in the economic environment in India, he said. Any disappointment on that front could again slow down the deepening of economic ties between the two nations, he added.

December 15, 2014   No Comments

XL Group Opens Offices at a Second Location in India

XL Group, the global insurer and reinsurer opened offices at Bangalore, India, where a team of 300 employees will provide underwriting support, claims administration, actuarial services, finance and accounting, according to the company Website.

Myron Hendry, executive vice president and chief platform officer at XL Group stated that this expansion “marks our ongoing commitment to hiring talent and developing expertise for our operations in India.”

XL Group’s country head for India, Derek Nazareth, said, “India plays a huge part in supporting XL Group’s global business and in delivering its growth targets. Our ambition is for our operations here to become centers of excellence for the Group.”

XL Group’s operations in India date back to 2004 when the company opened in Gurgaon, near New Delhi. Today the Group’s International Leadership Team recognizes the valuable contribution and capabilities XL Group’s operations in India is making and has made the opening of a second office a strategic priority.

 

December 12, 2014   No Comments