The Hindu : International : "India needs more pro-active insurance regulator"

Online edition of India's National Newspaper
Monday, Jun 13, 2005

International

International

"India needs more pro-active insurance regulator"

ISTANBUL: Aviva India is seeking a pro-active regulator for the healthy development of a booming insurance industry in the country.

"We need more pro-active regulation which sets out the standards and practices for the insurance industry to follow. We particularly need product rules and approval process to be set out in the regulation,'' Stuart Purdy, Managing Director of Aviva India Life insurance said here on Sunday. "Its important that we have consistent interpretation of the rules of the regulation. We have to move from a reactive style of regulation to pro-active regulation," said Mr. Purdy addressing Insurance Summit organised by Aviva here.

Aviva Life Insurance, one of India's leading insurance firm in India has decided to look at inorganic growth opportunities to increase its market share in India.

Grant Barrens, Director of Aviva's parent firm, said Indian experience had been too good and we are looking for mergers and acquisitions in India. "We are now open for M&As.''

India operations managing director, Stuart Purdy, said they would examine the proposal of AMP Sanmar but he did not commit on any buyout. "We will examine the proposal after the investment banker gives the basic documents early next week.''

Mr. Purdi said Aviva wants to join the top-5 league of Indian private insurers from the existing level of ninth position.

Aviva, which now manages assets worth $ 500-billion worldwide, has also been working on entering into the emerging markets in the Asia Pacific region such as Malaysia, Taiwan and Sri Lanka. The company has chalked out major expansion plans for both China and India.

According to a statement, Aviva India was planning to enhance its paid-up capital base to Rs. 400 crore from the existing level of Rs. 320 crore. "Capital infusion was not an issue for Aviva Plc or Dabur, the partners in the Indian insurance venture,'' he said.

Aviva India also plans to go aggressive in selling group business products. It has recently bagged a major account of Oil India Ltd and was on the verge of garnering a few more major corporate accounts.

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