GFIA Letter to Indian Prime Minister concerning Insurance Laws Bill 2008Release Date: 03/05/2013 Staff Reference: Janice Hilchie
March 05, 2013
Dear Prime Minister Manmohan Singh,
I am writing on behalf of the Global Federation of Insurance Associations (GFIA) which through its 32 member associations represents insurers that account for around 88% of total insurance premiums worldwide. GFIA is active on a broad range of issues affecting the international insurance industry.
The global industry is most encouraged to learn that the government intends to bring up during the current session of Parliament consideration of the Insurance Laws Bill 2008 that, among other provisions, would allow for an increase in Foreign Direct Investment (FDI) from 26% to 49% in Indian insurance company joint ventures.
You and your colleagues in government will have an important role to play in moving forward this long awaited legislation, and we wish to commend you for your leadership on this issue.
The purpose of this open letter is to inform you that the global insurance industry looks forward to having the opportunity to work with local partners by introducing new foreign capital into new and existing joint ventures.
As such and with all due respect, GFIA strongly supports approval of this measure as we are convinced by our experience in markets worldwide that it will help to strengthen the capabilities of the industry to serve the needs of Indian consumers and the public; expand the availability of new products and services; generate new employment opportunities; support investment in infrastructure; and enhance India’s standing in global financial markets.
Thank you for your consideration,
(Original signed by)
Chair, Global Federation of Insurance Associations