Warren Buffett’s prime investment vehicle Berkshire Hathaway Inc has decided to
close its online insurance broking business in India. In March 2011, Berkshire
had launched its India insurance venture, Berkshireinsurance.com.
This news comes at the time when India is trying to woo foreign investors in various sectors to boost the sagging Indian economy. The Insurance Amendment Bill, which suggests hiking foreign direct investment (FDI) cap from exiting 26% to 49%, is pending in the Upper House.
Due to the ownership restriction, Berkshire had invested only a small amount in the sector to sell products of Bajaj Allianz General Insurance Company rather than to enter into the insurance business itself with an Indian company.
Berkshire has decided to discontinue their online model of selling insurance products in India, a spokesperson for Bajaj Allianz General Insurance said. However, Sri Arun Balakrishnan, Head, Berkshireinsurance.com, has not yet confirmed.
The Bajaj Allianz spokesman said that all the existing policies that had been bought from Berkshireinsurance.com would be provided seamless services by an exclusive team set up at Bajaj Allianz General Insurance Company.
Source: http://www.insuringindia.com/
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