The Insurance Laws (Amendment) Bill (the Amendment Bill) in India allows foreign companies to establish reinsurance branches in India and to compete with the dominant domestic reinsurer GIC Re. The Amendment Bill is in its final stages of approval and needs only to be passed by the Indian Parliament within six weeks of the start of the next session on 23 February to be made permanent law.
It is Lloyd’s intention to establish a reinsurance branch in India as part of its long term growth plan. The Amendment Bill will be key to this and could see a Lloyd’s operation in India.
The Amendment Bill will also allow foreign brokers and insurers to increase investment levels in joint ventures with their Indian counterparts from 26% to 49%.
The Amendment Bill is one of a number of steps taken by the Indian Government in recent months to open the door to other industries and drive sustainable economic growth.