ne more foreign player Manulife Financial, the largest insurer of Canada is actively contemplating Indian Insurance sector to find a workable business model to set up shop here. Other foreign players like Allianz, Prudential, Standard Life, Aegon, Aviva and Nippon Life are already present in the Indian insurance sector through joint ventures with their respective Indian partners.
Now, Manulife Financial is closely examining various rules and regulation of the sector regulator Irda including those for the foreign ownership restrictions. Currently, the insurer has a representative office in India. Fiona SF Chan, Asia's AVP (Brand Development and Communications), Manulife Financial said, “We can confirm that we have a representative office in India. We have not pursued India (so far) because of ownership restrictions and, more recently, regulatory changes around product. But we maintain an active research brief and if we can find a business model that we think will work; we'd be prepared to enter India,“
As per current rule, a foreign player can not invest more than 26% in Indian insurance business, but the proposals are underway to raise this ceiling to 49%. The union finance minister Mr. P Chidambaram has expressed confidence that much-awaited amendments to the Insurance Bill may be introduced by the government soon. The Bill seeks to raise foreign investment cap in the sector from 26% to 49 %. Manulife Financial has principal operations in Asia, Canada and U.S.A. At the end of 2012, funds under management of Manulife Financials and its subsidiaries were $535 billion or over Rs 28 lakh crores.
As per the Life Insurance Council data, the Indian life insurance sector saw over Rs 33,633 crore of deployed capital, controlled more than Rs 16.18 lac crore managed assets with 34 crore policies in force as of March 31, 2012.
Now, Manulife Financial is closely examining various rules and regulation of the sector regulator Irda including those for the foreign ownership restrictions. Currently, the insurer has a representative office in India. Fiona SF Chan, Asia's AVP (Brand Development and Communications), Manulife Financial said, “We can confirm that we have a representative office in India. We have not pursued India (so far) because of ownership restrictions and, more recently, regulatory changes around product. But we maintain an active research brief and if we can find a business model that we think will work; we'd be prepared to enter India,“
As per current rule, a foreign player can not invest more than 26% in Indian insurance business, but the proposals are underway to raise this ceiling to 49%. The union finance minister Mr. P Chidambaram has expressed confidence that much-awaited amendments to the Insurance Bill may be introduced by the government soon. The Bill seeks to raise foreign investment cap in the sector from 26% to 49 %. Manulife Financial has principal operations in Asia, Canada and U.S.A. At the end of 2012, funds under management of Manulife Financials and its subsidiaries were $535 billion or over Rs 28 lakh crores.
As per the Life Insurance Council data, the Indian life insurance sector saw over Rs 33,633 crore of deployed capital, controlled more than Rs 16.18 lac crore managed assets with 34 crore policies in force as of March 31, 2012.
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