Already 11 foreign companies have tied up with Indian firms -- Guardian Royal Exchange with Cholamandalam group; Chubb Group with Kotak Mahindra; Standard Life with HDFC; Royal Sun Alliance with DCM Shriram Consolidated; Prudential Insurance with ICICI; AIG with the Tatas; General Accident with Bombay Dyeing; Commercial Union with The Hindustan Times Group; Metlife with MA Chidambaram Group; Gio with Sanmar Group; and Canada Life with 20th Century Finance.

All of them are willing to start with a minimum capital base of Rs 100crore. The equity ratio of the foreign and Indian companies' investment is yet to be announced, though it is expected to be 24 per cent foreign and 76 per cent Indian.

Insurance industry sources believe that the entry of the foreign companies will only vitalise the sector. It is estimated that there will be a quantum jump in the insurance sector from the 15 per cent annual growth rate to 30 per cent in the next five years. The turnover will be worth $10.5 billion.

These estimates are based on the fact that about 80 per cent of the insurable population in India is yet to be tapped. According to a survey conducted by Royal and Sun Alliance during 1997, around 94 per cent of the middle class, employed, educated males were not insured in the non-life segment.

In the developed countries, individuals have medical cover, householders insurance, professionals indemnity insurance and so on. Hotels, shops, banks and manufacturers have liability policy. Every major industry has an insurance expert. According toRamesh Damodaran, vice president of the Industrial and Technical Consultancy Organisation of Tamil Nadu Ltd (Itcot), ``In the international market, insurance is a dynamic field receptive to the requirement of the clients. Product development, improvement, change and modification of the marketing strategy are a continuous process.''

Opening up of the sector is going to change the insurance scenario in India with the availability of different products, efficient service and competitive prices. All these would expand the size of the market significantly, he said.

In order to highlight the chances the changing situations are offering to the insurance companies, prospective entrepreneurs and customers, Itcot is organising a two-day workshop on ``Opportunities for Private Sector in Insurance'' on October 9 and 10.

Ramesh Damodaran, organiser of the seminar, told The Financial Express, ``The seminar aims to provide the features and experiences of the present insurance and reinsurance players with their visionfor year 2000. The speakers will dwell at length on the products of insurance both life and non-life, the pricing strategy, pitfalls and claims. They will also highlight the private sector views on insurance industry.''

The seminar targets companies that are planning to enter the insurance sector and large industries and corporates having large exposure to insurance. Senior executives from United India Insurance, Life Insurance, Insurance Learning Centre, Insurance Regulatory Authority, members of the Malhotra Committee and Tariff Advisory Committee and representatives from the newly-formed insurance joint ventures will address the seminar.