5/12/2014 India: JLT starts broking ops; other foreign brokers to follow JLT, one of the worlds largest providers of insurance and reinsurance brokerage and associated services, has launched its insurance broking joint venture in India. London-headquartered JLT has a 26% stake in the joint venture, called JLT Independent Insurance Brokers. The Indian financial services group, Sunidhi Group, holds the remaining 74% stake. JLT said that it is keen to increase its stake in the joint venture to 49% when the law permits it to increase its stake. We are a long-term player, whether its 26%, 49% or 74%, it doesnt matter. If the regulations allow us to take a larger share, we will be most delighted to go for that, JLT Group Chief Operating Officer Balamurugan Vishwanathan, told Press Trust of India. Other foreign brokers are also expected to enter the Indian market ahead of an expected change to the law to increase the foreign investment ceiling in brokerages from the existing 26%. “India is a market, which no foreign players can ignore at the moment. There are many foreign broking firms that are planning to tap the Indian market. Our goal is to become one of the top five brokers in the country in another five years,” said Mr Sanjay Radhakrishnan, chief executive officer of JLT Independent Insurance. Currently, there are 343 registered insurance brokers in India. Out of these, five or six entities are joint ventures between a foreign broker and a domestic partner, reported the Deccan Chronicle. Aon Global and Marsh are the two other global insurance brokers that are currently operating in India. A high-powered committee formed by the Insurance Regulatory and Development Authroity early this year proposed a roadmap outlining how to increase FDI in insurance intermediaries, including insurance brokers, to 100% over five years. However, Mr Sohanlal Kadel, president of Insurance Brokers Association of India, said that his association would oppose any such move. He said: “We are open to foreign players holding either a 26% or 49% stake with Indian management control. However, we will oppose any move to allow 100% FDI in the insurance broking industry.”
Posted on: Fri, 05 Dec 2014 12:33:37 +0000
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