ACLI Statement On India Raising Foreign Investment Cap

The American Council of Life Insurers issued the following statement in connection with the Indian Parliament passing legislation to raise the foreign investment cap on insurance companies from 26 percent to 49 percent

News provided by

American Council of Life Insurers

Mar 12, 2015, 05:12 ET

WASHINGTON, March 12, 2015 /PRNewswire-USNewswire/ -- ACLI commends the government and partners of Indian Prime Minister Narendra Modi for passing legislation that allows foreign companies to purchase up to 49 percent of Indian insurance companies and to establish branch reinsurance operations. The legislation affirms an executive order issued by Prime Minister Narendra Modi in December and makes the measures permanent.

ACLI and its member companies have long supported the measures, which were first introduced in 2008 and have been considered since the market was de-monopolized in 2000.

"This legislation will generate more jobs, inject billions of dollars in foreign direct investment and will expand the availability of new products and services for the Indian people," ACLI President and CEO Dirk Kempthorne said. "It will help the insurance industry better serve the needs of India's growing population. Access to more sources of foreign capital also will support investment in vital long-term infrastructure projects while enhancing India's standing in global financial economy.

"Indian Prime Minister Narendra Modi has demonstrated his commitment to harnessing innovation and global best practices to serve the needs of India's consumers and economy. ACLI and our members look forward to working with Indian authorities in the weeks and months to come as rules are promulgated to implement this statute into practice. There are many details to work through, but the Prime Minister has demonstrated his commitment to growth, and we look forward to this same spirit as the details are developed."

SOURCE American Council of Life Insurers