The Union cabinet on Wednesday approved an agreement between the insurance regulators of India and the US for information exchange, research assistance and international standard-setting activities.
"The Union cabinet... has approved the signing of a Memorandum of Understanding (MoU) between Insurance Regulatory and Development Authority of India (IRDAI) and the Federal Insurance Office, US," the Finance Ministry said in a statement.
The MoU provides a framework for cooperation and coordination, including for the exchange of information and research assistance with respect to each authority's overview and other lawful responsibilities, the statement said.
Under the agreement, both countries will share their experiences on various regulatory functions and will provide mutual assistance including training activities, it said.
"India and the US have also agreed to continue to facilitate cooperation on international standard-setting activities, financial stability and the development and implementation of consumer protection through sound prudential regulation of the insurance sector."
India and the US have strong business relations and various institutional mechanisms are in place to strengthen bi-lateral cooperation on wide ranging multi-sectoral issues between the two countries, the Ministry said.
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The US is a major contributor of foreign direct investment (FDI) in India and there are many joint ventures between companies from the two countries in the insurance sector.
"With increase in foreign investment cap to 49 per cent, there is further scope for foreign investments in Indian insurance sector particularly from the US-based companies. Hence, the bilateral MoU between IRDAI and FIO, the US holds lot of potential for the two countries," it added.
--IANS
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