Finance Minister Nirmala Sitharaman
In the letter, GFIA noted that foreign insurers play a pivotal role in India’s insurance market since its liberalisation in 1999, with over two-thirds of Indian life and non-life insurers having foreign partners. However, several foreign insurers had either reduced their investments or exited the market, indicating the need for further regulatory reforms.
Brussels: The Global Federation of Insurance Associations (GFIA), whose members account for around 89 per cent of total insurance premiums worldwide, has urged the Indian government to reconsider rules that impose additional restrictions on insurers with foreign partners.
India is one of the world’s most promising insurance markets, but competing economies have implemented more liberal investment regimes. By promoting a more investor-friendly regulatory environment, India can attract new market entrants, create jobs, and expand insurance offerings for its citizens, GFIA has said in its letter to Finance Minister Nirmala Sitharaman.
In the letter, GFIA noted that foreign insurers play a pivotal role in India’s insurance market since its liberalisation in 1999, with over two-thirds of Indian life and non-life insurers having foreign partners.
However, several foreign insurers had either reduced their investments or exited the market, indicating the need for further regulatory reforms.
GFIA has welcomed the government’s move to make changes to its Insurance Act.
GFIA said it supports the plans to remove the foreign equity cap, a long-anticipated move which follows India’s broader economic liberalisation efforts.
GFIA also appreciates the Indian ministry’s willingness to review regulatory safeguards introduced following previous amendments to the Insurance Act. This reassessment is crucial in ensuring that past measures do not unintentionally hinder the sector’s potential.
Through its 42 member associations and 3 observer associations, GFIA represents the interests of insurers and reinsurers in 68 countries.
GFIA is incorporated in Switzerland and its secretariat is based in Brussels.
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