What happens now to AIG and TATA alliance?
The Insurance Regulatory Development Authority (Irda) has asked Tata AIG to submit a report on what kind of impact they see on their business in India, according to a senior official.
Tata AIG officials had met the regulator to apprise it of the global developments.
Tata and AIG have a 74:26 joint venture for both life and general insurance in India.
The AIG group employs about 12,000 people in the country through its insurance ventures, consumer finance unit and mutual fund.
The fate of these would depend on what developments take place in the next 48 hours, sources said.
No official in India is permitted to speak, but insurance industry sources said the global crisis may not immediately translate to scaling down of businesses in India.
Also, it would be interesting to track AIGs decision in case India decides to raise foreign direct investment limit from 26% to 49% in the next few months.
AIGs insurance ventures have been growing at a fairly good pace and the brand value has been very strong.
Moreover, with investments in Indian insurance business conducted under strict guidelines, there is no kind of exposure to risk in India.
Last week, following the hammering at the global bourses, the AIG chairman is said to have communicated to all its employees, including those in India, not to panic.
Source : DNA
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