Berkshire Hathaway, the conglomerate led by billionaire Warren Buffett, today said it plans to enter the Indian non-life insurance sector as a corporate agent of leading player Bajaj Allianz General.
The move would mark the foray of Berkshire Hathaway's direct entry into the Indian market, where the billionaire investor Buffett is yet to make substantial investments.
As part of its planned India entry, the US conglomerate has incorporated Berkshire India to sell and distribute general insurance products in India.
Berkshire India would directly sell insurance to consumers through the portal 'www.Berkshireinsurance.Com' and by way of telemarketing, it said in a statement.
Initially, the focus would be on motor insurance but the company would continuously update its business model.
"If the market proves receptive, the Company will seek to expand its products to include health insurance, life and travel insurance and other personal lines, as well," it noted.
Berkshire Hathaway is a sprawling US conglomerate Berkshire Hathaway that is into various businesses, including property and casualty insurance and reinsurance, finance, manufacturing, and retailing.
It has significant stakes in global majors, including Coca-Cola and Kraft, that also has a good presence in India.
Berkshire India Chief Executive Officer Arun Balakrishnan said that his company and Bajaj Allianz share a common goal of providing exemplary customer service.
"We have been watching the Indian insurance industry for a long time and are very excited about the immense opportunity in the emerging retail insurance sector," Berkshire India's Director Kara Raiguel said.
Berkshire Hathaway has been very successful in the online and direct distribution model in the US and we would like to replicate that success in India as well, he added.
According to him, buying financial products directly over the internet is a relatively new and growing opportunity in India.
Known for his business acumen and investment style, Buffett is Chairman of Berkshire Hathaway.
Going by reports, Buffett would be visiting India this month as part of his philanthropic initiatives.
