The proposal to allow foreign reinsurance companies to open a branch in India is currently under consideration in the Parliament and will take sometime, according to Insurance Regulatory and Development Authority chairman Jandhyala Hari Narayan.
“This requires an amendment to the Irda Act 1999, which has already been moved in the Rajya Sabha. Permitting reinsurance companies to open a branch in India would bring more capital into the business and increase the capacity of the Indian market to retain risks,” he said at the Confederation of Indian Industry (CII)’s seminar on ‘Role of insurance in infrastructure development’ in Hyderabad on Wednesday.
The Irda chief said the insurance industry needs capital to grow and for this the regulator had proposed to the government to enhance the foreign direct investment (FDI) limit.
