Mr. R.K. Nair, member of Insurance Regulatory and Development Authority (IRDA) told press conference that, based on the request received from various insurance companies, IRDA finalized the guidelines for opening an overseas branch. Inspite that no private players have submitted the application for opening an overseas branch. He further added that though some public sector companies are operating in foreign countries, private companies are not showing their willingness to open the braches in foreign countries in near future.
- Company should have a minimum net worth of Rs. 500 crores for life insurance and Rs. 250 crores for general insurance.
- Company should have earned a profit for the three consecutive previous years from the date of application.
Industry experts also believe that whether or not private players will open foreign branches, based on this new guideline, is a matter of time.