The benefits of opening up the Indian insurance sector will be immense given the process of globalisation of the business. India, however, needs to put in place a solid regulatory body or mechanism to supervise its insurance market.
This was the message given by Kevin T Cronin, director of government & international relations, National Association of Insurance Commissioners (NAIC), USA, at a discussion "Opening up of the insurance sector: Implications for developing nations" organised by the Indian Chamber of Commerce and the United States Information Service (USIS) here on Monday.
Cronin, an expert on the regulatory aspects of insurance, has been closely involved with the Solvency Programme in the US under which states formulated regulatory and supervisory laws to match NAIC's suggestions and programmes.
Cronin said that insurance was an important item on the G-10 agenda. Though there was a drive for globalisation of the insurance business, many governments have not put in place a proper regulatory body.
Referring to India, Cronin said, opening up the insurance sector to foreign parties would improve customer service and value, better domestic insurance regulation, transfer technological and managerial knowledge, raise domestic savings, increase external finance capital etc.
ICC president, A V Lodha, said insurance has emerged as a major business all over the world and there are trillions of dollars invested in this industry in over 125 countries.
