Japan's Sompo eyes big India play after insurance reforms

Mumbai: Japan's Sompo Holdings is looking to expand its presence in India, encouraged by the government's decision to raise foreign direct investment (FDI) limit in insurance to 100% and the Insurance for All by 2047 vision, a senior executive told ET.

"We are extremely encouraged with the developments over the last few years," said Kenneth Reilly, chief executive officer, Insurance, Asia Pacific. "Insurance for all by 2047, some of the regulatory changes on foreign direct investment, some of the changes regarding transparency and governance - all things that are really encouraging for companies such as Sompo to really play a more active role in delivering some of the overall ambitious statements by the government," Reilly said.

India has increased the FDI limit in the insurance sector to 100%, a move that is expected to attract greater foreign participation. Sompo operates in India through Universal Sompo General Insurance, in which it holds a 34.61% stake. Indian Bank, Dabur Investment Corporation and Karnataka Bank as the other investors. While stopping short of announcing any increase in investment or stake, Reilly said the company continues to evaluate opportunities in India with its partners as well as other stakeholders.

"We continue to keep the dialogue very fluid and open," he said.

Universal Sompo has been profitable in recent years and paying dividends, although it has not received fresh capital from shareholders for the last few years. Asked whether Sompo plans to commit additional capital to support the local insurer's next phase of growth, Reilly said the group has a long-term commitment to India. "Our commitment is there," he said. "So again, we will continue to work with our partner promoters to ensure that USGI is well equipped for future growth and for future commitment to the Indian market." Reilly said India has emerged as one of Sompo's strategically important markets globally and the company intends to deepen its engagement with regulators, government officials and the broader insurance industry.

The Japanese insurer, plans to leverage its global expertise in underwriting, product development and risk management to support Universal Sompo's growth. The group employs more than 30,000 people globally across underwriting, actuarial, claims and technology functions.

Beyond general insurance, Sompo is also exploring opportunities to introduce expertise from its broader wellbeing businesses, including life insurance, digital services and nursing care, in India. The company has already partnered with the National Skill Development Corporation International to train nursing professionals in India for deployment in Japan.