The Kirloskar Group, which has been in the engineering industry, plans to venture into India’s general insurance business. Kirloskar Group has initiated talks with general insurers for joint venture to sell general insurance products in India, however, official confirmation is awaited.
The Kirloskar group of companies was one of the earliest industrial groups in the engineering industry in India. The group produces pumps, engines, compressors, screw & centrifugal chillers, lathes and electrical equipment like electric motors, transformers and generators (it is the world’s largest genset manufacturer). The company exports to over 70 countries over most of Africa, Southeast Asia and Europe.
Kotak Mahindra Bank, is another Indian company looking to enter the non-life insurance market. Ever since government has increased the cap for general insurance from 49% from 26%, large foreign companies are also trying to enter India’s general insurance market. Of the 28 nonlife insurance companies in India, the four public sector enterprises still dominate the market. More than 50% of the business is done by New India Assurance, National, Oriental and United India Insurance Company.
