The Global Federation of Insurance Associations (GFIA), a conglomerate of insurance associations, has written an open letter to Prime Minister Manmohan Singh urging him to further open up the insurance sector.
“The purpose of this open letter is to inform you that the global insurance industry looks forward to having the opportunity to work with local partners by introducing new foreign capital into new and existing joint ventures,” the letter written by GFIA says.
The finance minister P Chidambaram recently said that he was confident of getting Parliament support for insurance and pension bills in the current budget session.
The insurance bill seeks to raise the foreign direct investment (FDI) limit to 49% from the current 26%.
Several foreign insurers are already waiting in the wing and are set to enter the Indian market, once the FDI cap has been raised.