Sources point out that some of the employees of Aditya Birla Insurance Brokers, whose acquisition by a private equity fund -Samara Capital- has not been approved by the Indian insurance regulator IRDAI yet, have also joined Lockton’s India operation
Singapore:
US based multinational insurance broking company, Lockton, has announced its entry into the Indian market on Monday.
It has appointed Sandeep Dadia, former head of Aditya Birla Insurance Brokers as its chief executive officer for its India operation as well as a member of the Lockton Asia leadership team subject to regulatory approval.
Sources point out that some of the employees of Aditya Birla Insurance Brokers, whose acquisition by a private equity fund -Samara Capital- has not been approved by the Indian insurance regulator IRDAI yet, have also joined Lockton’s India operation.
Lockton will be the fourth American re/insurance broking company after Marsh, AON and Gallagher, to set up operations in the country.
However, this the first international insurance broker broker which has set up operations in the country after the government had allowed 100 per cent FDI for the insurance intermediaries. Some of the international brokers, who were already there like-Marsh, Aon and Gallagher, Howden, by having Indian joint ventures before 100 per cent was allowed, have already increased their stakes to 100 per cent by buying out their local partners.
Though, there are over 700 licensed insurance brokers in the country sharing over Rs 40,000 crore of commission in the Rs 2.5 trillion general insurance market, out of them, hardly six to seven are only international brokers.
Observers point out that the international brokers, though can have their operations with 100 per cent control, have preferred not to set up operations as Indian insurance broking industry operates in an unprofessional manner.
Warren Merritt, Asia CEO, Lockton said, “This strategic entry into India creates an opportunity for Lockton to continue to build its established network in the region. Lockton’s largest investment in the Asia region reflects our dedication to fostering economic growth and creating new opportunities for the local community. We look forward to actively contributing to the development of the insurance industry within the country and across the region.”
Sandeep Dadia said, “As we establish a new startup backed by one of the world’s largest insurance brokers, Lockton is committed to being a strategic partner, ensuring that our risk management solutions contribute to our clients’ success.”
Lockton has 135 offices worldwide.