The financial crisis in the US and Europe has resulted in several prospective insurance entrants putting their plans to set up joint venture companies in India on the backburner as they consolidate their home businesses.
Religare Enterprises, which had announced its plans to set up a non-life insurance company last January, is one such firm
Shachindra Nath, group chief operating officer of Religare Enterprises Ltd, declined to name US and European firms with whom it is in talks for partnership, but confirmed that decisions were jammed.
“Because of the global meltdown most of the foreign insurers are reviewing their general insurance plans for India and that is the reason for the delay,” Nath said.
Similarly, Allstate Insurance Company of the US and South Korea’s Samsung Insurance, which were scouting for Indian partners to set up a non-life insurance company, have put their plans on hold, said a source close to the talks. The two had submitted bids for tying up with State Bank of India.
While these companies may be stymied, other previously announced insurance ventures are on track.
These include a venture between Larsen & Toubro and US-based Travelers for non-life business, and a similar one involving Bank of Baroda, Andhra Bank and UK-based Legal & General and one by US-based Liberty Mutual Group and Dabur Ind.