FDI rules allow foreign partners to hold upto 49 percent stake in an insurance venture
Global insurance broking firm Marsh has increased shareholding in its local unit Marsh India to 49 percent from 26 percent. This is the maximum limit permitted under laws governing foreign direct investment in India-based insurance broking firms.
The transaction was approved by the Indian insurance regulator, the Insurance Regulatory and Development Authority (IRDAI).
Marsh India is a joint venture between Marsh International Holdings Inc. and its India-based partners, which include the Rampart Trust.
Alex Moczarski, Chairman of Marsh & McLennan Companies International and Chairman of the board of Marsh India said, “As companies in India look to expand both domestically and into international markets, they need the very best risk and insurance advice to help them navigate an increasingly complex global risk landscape. We are committed to working closely with our colleagues in India as they continue to bring the very best global expertise to local clients.”
Marsh started its operations in 2003 and is the first foreign broker to get composite broking license by the IRDAI. Currently, it is present across India through its 17 branches and has almost 4,500 clients in the country.
Sanjay Kedia, Country Head and CEO of Marsh India said, “Marsh’s decision to increase its stake in the joint venture reflects its long term commitment to supporting clients in India as we develop plans to accelerate the expansion of our operations and build a stronger network across the country.”Marsh India writes a slew of businesses and industries including aviation, construction, infrastructure and financial services among others.