India: Strengthen local business before raising FDI cap in insurance, says expertReprints
Prabodh Thakker, chairman of India-based Aon Global Insurance Brokers Pvt. Ltd., said the government should consider the health of India's insurance sector before increasing the foreign direct investment cap, The Hindu Business Line reported.
Mr. Thakker said there is a need for an in-built tax and administrative mechanism that will "attract reinsurers" to set up operations in the domestic market. He said "we will see inflows of billions of dollars of reinsurance premium."