By now it has become evident that 2010 is going to be a boon for the Indian insurance sector and the reasons behind this are not hard to see. A number of insurance tycoons across the globe are getting interested to capitalize on this mounting (in terms of revenues) and certainly vibrant market and foremost of them happen to be the celebrated insurance companies hailing from Japan.
One of these is, without a shred of doubt, Mitsui Sumitomo, an exceedingly acclaimed insurance player in the realm of Japan, and the company, at the moment, is busy is exploring opportunities to enter the Indian insurance sector. What is its aim at the moment? Well, as far information goes, it is to set up shop in India. It has to be stated, in this context, Indian Government’s proposal to lift the FDI cap in the insurance sector from 26 per cent to 49 per cent has stimulated Japanese and Korean companies to a large extent.
Why shouldn’t the same be too? Recent studies suggest that India and China are among the fastest growing insurance markets following the recession. Is there any difference between the two? As indicated by industry analysts, even if China is a bigger market, India’s distribution system is more evolved and it is believed to be acting as the Unique Selling Proposition at this moment in time.
There have been other inspiring facts as well. As said by industry officials, global companies by and large prefer to have a presence in both India and China and the market grapevine has it that a couple of Japanese and Korean insurance players are looking at possible joint venture deals with some of the financial services firms having extensive distribution networks.
Bear this in mind. Mitsui Sumitomo Insurance (London Management) Ltd (MSILM*) is part of the Mitsui Sumitomo Insurance Group (MSIG). MSILM, through its subsidiaries, is one of the most innovative and forward thinking insurers in the market at present.
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