10 new insurance companies to start operations in India soon

Insurance Regulatory and Development Authority of India (IRDAI) has received fresg applications from ten new players who want to start operations in the country.

"The regulator is currently processing applications of ten players consisting of insurers and re-insurers," IRDA member (Finance and Investment) V R Iyer said.

"Four primary players - two non-life insurers, one life insurer, one health player, one re-insurer - and five global re-insurers have now applied for licences to set up operations in the country," she said.

However, names of these insurers and re-insurer were not revealed.

As per market sources, the Aditya Birla Group is setting up a health insurance company in partnership with MMI Holdings, a South African
firm. Other than this, global re-insurers who have approached the IRDAI include Munich Re, Swiss Re, Hannover Re, SCOR, and Excel ILSE.

She added that joint ventures in India in insurance sector are also in the process of completing their paper works so that they can comply with the new norms, including being owned and controlled by their Indian promoters, as made mandatory in Insurance Companies (Amendment) Act, 2015.

"We have got confirmation from 16 joint venture players that they have complied with the new norms. Others have informed us that they would complete the process in one month," she added.

"We were already handling this job as any FDI proposals in the insurance companies have to be first reviewed by the Irdai to ensure compliance of 'Indian owned' and 'controlled'. We are fully geared up to do this job," she added.

Ever since the FDI limit was raised from 26% to 49% last year, India’s insurance industry has received Rs 10,000 crore.

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