LIC expects nod soon to start biz in Singapore

The country's largest insurer,Life Insurance Corporation,said it is expecting a favourable decision from the Singapore authorities to enter the insurance business in the island state.

The country’s largest insurer,Life Insurance Corporation,said it is expecting a favourable decision from the Singapore authorities to enter the insurance business in the island state.

“LIC had asked for permission to set up a subsidiary. The process is going on (regulatory clearance),” LIC Managing Director A K Dasgupta said.

“We are expecting to get favourable decision from the Singapore authorities and hopefully it should come in due course of time,” he said.

Story continues below this ad

The Singapore regulatory authorities have been swift and their processing has been fast,he added.

Along with a rating from an international agency,the company has submitted other relevant documents for approval,he said.

However,he said the regulator has asked for some clarifications regarding capital and other details.

The query generated by the Singapore authorities is part of a routine exercise and LIC is in the process of sending feedback,he said.

Story continues below this ad

LIC set up a representative office in Singapore about two years ago. It has done a lot of market surveys and viability studies for setting up a subsidiary in the country,he said.

LIC already has an overseas presence in countries like the UK,Mauritius,Kenya,Nepal and Sri Lanka. In the Middle East,LIC is present in Saudi Arabia,Kuwait,Dubai,Abu Dhabi,Oman and Qatar.

During 2009-10,LIC collected a premium of Rs 70,891 crore compared to Rs 52,954 crore in 2008-09,thereby growing by around 34 per cent during the year.

The market share of LIC increased to 65 per cent in 2009-10 compared to around 61 per cent in the previous year.