American International Group (AIG), the global insurance giant, is marketing time and is waiting for the day when the insurance industry will be opened up in India. "We are sure to set up business in India when the opportunity comes," said Frank G Wisner, former US ambassador to India who represented AIG at the US Investment Summit in the city yesterday.
AIG already has a large investment in India. It stands at more than $300 million at present, exposure to the capital market being an important component of the AIG investment. Wisner said investments in India would soon reach $51 billion. But AIG is ready interested to enter India with its core competence - insurance. Wisner admitted that it depends on the political decision when the sector would be opened up buy hoped that the decision will not be unduly delayed.
Wisner does not appear to be distributed by the present policy on insurance insurance but he refuses to accept it as a "closed chapter." Things will change, he said.
In that way he appears to fit the bill of Montek Singh Aluwahalia, Union finance secretary, who a few minutes earlier told Business Standard that the insurance companies are "long-term players." He said this when it was pointed out to him that there is a large presence of US insurance industry in the summit despite the fact that this sector is closed to the private and foreign companies and revision in policy is not forseen in the immediate future.
Wisner added that AIG has presence in 130 countries and its net assets are as high as $140 billion. In India, AIG will sick to its tie-up with the House of Tatas which was formally reached in 1993. The basic conditions about a joint venture between Tatas and AIG will be maintained through there may some changes in the modifications of operation.
