Changes will allow foreign firms to own 49% and open offices
Peter Akers, CEO of Munich Re India Services says insurance sector reforms to raise foreign direct investment in insurance companies to 49% from 26%, will also allow it to open a branch in the country, Reuters reports.
"It will enable us to serve our clients better," he said. Currently Munich Re operates in India through the so-called "service company" model.
Akers expects more life insurance companies to enter the Indian market after the reform bill is passed, further increasing demand for reinsurance.
Munich Re had a 22% share of the life reinsurance market in India for the year to March 2009, he said.
