Buffett seeks higher FDI in Indian insurance sector

New Delhi, Mar 25 (PTI) Keen to enter growing
insurance sector, US billionaire Warren Buffett, who is here
mainly to promote philanthropy, Friday wondered if India would
raise the FDI limit in the sector to 49 per cent.
The US based company is keenly watching the
developments regarding further opening of the sector to
foreign investment.
Legendary investor Buffett, whose group recently
entered Indian insurance market, called on Irda Chairman J
Harinarayan here and wanted to know if the FDI cap would be
raised to 49 per cent. Irda is the insurance regulator.
"Buffett wondered whether the foreign direct
investment limit for foreign insurers could go up to 49 per
cent (from the present 26 per cent)," Harinarayan told PTI
after meeting chairman of conglomerate Berkshire Hathaway.
"The discussions were very general and was good," he
said.
Buffett, known for his business acumen and choice of
investments, said that India is an "an exciting market".
The Insurance Laws (Amendment) Bill, 2008 is pending
in Parliament.
The Bill, when enacted, would allow raising the FDI
cap for the industry to 49 per cent. However, it has been
awaiting approval since 2008 as it was delayed by strong
opposition from the Left parties.
Berkshire Hathaway had recently forayed into the
Indian non-life insurance sector as a corporate agent of Bajaj
Allianz General.
On his maiden visit to India, Buffett had said that an
foreign investment cap of 26 per cent in insurance sector here
was a deterrent.
Earlier in the day, Berkshire Hathaway head
re-insurance Ajit Jain said the question of larger investments
in the sector in India, "depends on regulation."
India-origin Jain, long rumoured to succeed Buffet,
looks after the conglomerate's multi-billion dollar
re-insurance business.
On Thursday Buffett along with Bill Gates, held a
dinner meeting here with 70 business people, including Wipro
Chairman Azim Premji and discussed a wide range of issues
related to philanthropy.
As part of its India entry, the American conglomerate
has incorporated Berkshire India to sell and distribute
general insurance products in India. It would directly sell
insurance to consumers through the portal
'www.berkshireinsurance.com' and by way of telemarketing.
Berkshire Hathaway is a sprawling conglomerate that
has interests in various businesses, including property and
casualty insurance and reinsurance, finance, manufacturing,
and retailing.