The Multilateral Insurance Working Group (MIWG), an industry forum advising the Government and the Insurance Regulatory Authority (IRA) on opening up the sector, has proposed a minimum solvency margin of Rs. 50 crores for new prospective insurance firms. It has also suggested the fixing of clear-cut ‘Solvency Monitoring Levels’, and has suggested outlining of multiple trigger points to enable companies to take different corrective action. The group’s recommendations on solvency margins has been submitted recently to the Finance Ministry and the IRA.

Lang wants India to open up insurance sector soon

The British Board of Trade President, Mr. Ian Lang, has said that his country was keen on India proceeding faster in opening up its insurance industry and also privatising its financial services in its continuing bid to attract massive foreign investment. Addressing a press conference, Mr. Lang said huge benefits would flow out of liberalising the insurance industry because it would help introduce competitive rates and terms for policies and benefits to consumers and to the industry by reducing the cost and increasing the overall size of the industry.

Ramaiah hints at lowering export target

The Union Minister of State for Commerce, Dr. B. B. Ramaiah, indicated that circumstances might warrant scaling down of the 1996-97 export earnings target. Speaking to newspersons after addressing a plenary session on ‘Global Trade Development: Third World Perspective’ at a summit, Dr. Ramaiah said that while a firm figure could be arrived at only after the completion of a review exercise by this month-end, indications were that export earnings would be around $36 billions, against the target of $38 billions.

Related Topics
comment COMMENT NOW