India has potential to emerge as reinsurance hub: Experts

A hike in FDI cap in insurance sector to 49 per cent from the current 26 per cent can help India emerge as a reinsurance hub in Asia, say industry experts.

A Parliamentary Committee, examining the Bill on raising the FDI cap in insurance sector to 49 per cent, will be presenting its report on December 8.

India could become an insurance hub if the government proposal on FDI hike in the key sector comes through and it comes out with right regulation and infrastructure, they said.

“In economic terms, India is at a turning point in its history, experiencing a renaissance politically, commercially, culturally. While GDP globally is flat, the IMF recently has revised India’s forecasts upwards to 5.6 per cent,” Lloyd’s Chairman John Nelson has said.

He was speaking at the first-ever Indian International Insurance Summit at London organised recently by Asia Insurance Post and Indian Merchants’ Chambers.