Govt to take up insurance brokerage FDI in March
Under the current consolidated FDI policy, DIPP has allowed entry to insurance business only and has not mentioned any intermediary services, including broking for getting FDI under the automatic route. It is now expected DIPP 2012 circular would be modified to include broking as one of the permissible areas for getting FDI.
Currently, there are about 250 insurance brokers in the country. There are also about four to five international players in India, participating through Indian insurance broking firms. Their main activity is to market insurance products of various companies.
“Lack of clarity on the policy results in delays in processing applications for FDI inflows in the insurance broking sector and also makes investors wary of putting money here. No one wants to be caught in regulatory issues after making investments,” said an official of insurance broking firm that wants to rope in a foreign player as joint venture partner.
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