WASHINGTON, D.C. (PRWEB) March 12, 2015
Stephen Simchak, director of international affairs for the American Insurance Association (AIA), issued a statement today welcoming the passage of legislation in the Indian Parliament raising the foreign investment cap on insurance companies to 49 percent from 26 percent. The Insurance Laws (Amendment) Bill makes permanent a government ordinance issued in December.
Mr. Simchak’s statement follows:
“AIA and its members are very glad that U.S. property-casualty insurers and other insurers will be able to invest more in the Indian market. The government in New Delhi made it clear from the outset that attracting more investment in India’s growing economy is a priority for them, and pushing this bill through the Parliament is evidence of that determination.
“In addition to attracting more investment to India, increased engagement in the Indian market from U.S. insurers will lead to greater access to insurance and more choices for Indian consumers. Economic stability and social stability in any country are directly related to the uptake of insurance. India currently is very under-insured, particularly in light of its significant economic growth and expanding middle class.
“This legislation passed the Parliament because the benefits of an open and developed insurance market are enormous. It passed because the members of the Parliament recognized that taking this important step toward more investment and greater access to insurance is in the interests of India’s citizens and growing economy. We look forward to seeing the positive effects that today’s vote will have in India.”