General insurance or non-life insurance sector in India is turning out to be very attractive to investors worldwide as well as those in the country. According to media reports, Mahindra & Mahindra Group, which is diversified into many businesses, is planning to venture into the general insurance space in India.
The healthy growth of the general insurance industry coupled with news of potential mergers, FDI limits, the second largest population, low penetration levels, etc makes the insurance markets in India very lucrative for investors.
Mahindra Group has its operations spanning 18 key industries: farm equipment, automotive, aerospace, aftermarket, agribusiness, components, construction equipment, consulting services, defense, energy, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, two-wheeler, real estate, and retail.
The group is said to have mandated consultants at KPMG to find a partner with experience and expertise in running a general insurance business. The reports have not been confirmed by the company yet.
Currently, there are 24 non-life insurance companies in the country including 4 public sector insurers National Insurance, New India Assurance, United India Insurance and Oriental Insurance. Bharti AXA General Insurance Company, a joint venture between Bharti and AXA is also undergoing a change in domestic ownership with the entry of the corporate giant Reliance Industries.
