Insurance Startups in China and India
Posted on Feb 08, 2010 by Sergio Ulloa (G+)
Two new insurance companies are working their way through regulatory boards in developing economies as of today, February 8, 2010. The India-based Max Bupa Joint venture is part way through the Indian regulatory framework, while further east, the China Insurance Regulatory Commission gave the go-ahead for the establishment of Anbang Life Insurance Co. Ltd. The independent joint venture between Max India and Bupa International, dubbed Max Bupa Health Insurance, is half way through the regulatory barriers and expecting get full approval in order to start its operations in March. The Indian insurance regulator, IRDA, has three stages of approval: the first being R1, where the promoters are evaluated by the regulators; R2 is the stage at which the proposed business model is evaluated and R3 is where the formation of the country is approved. The joint venture will be focused on providing a range of health insurance products targeted at both individual consumers and business customers. The starting capital of the JV is £12 million, and will see Max India control 74% with the Bupa Group taking 26%, which is the maximum amount permitted under India's laws covering foreign investment in local companies. The establishment of Anbang Life Insurance on the other hand, has already been approved by the China Insurance Regulatory Commission (CIRC); it has registered capital of 500 million yuan. The regulator confirms that Anbang Life has five shareholders: Anbang Property and Casualty Insurance Co., Ltd.; a Zhejian-based motor sales company; Liantong Rental Group, a motor rental company; and two investment companies. Anbang Life Insurance will focus on the provision of domestic life insurance policies in the Chinese market. Companies Mentioned: Max India: Incorporated in 1988, Max India Limited is a holding company with business interests working in the healthcare and services industries. Their wide range of health related interests include a joint venture life insurance company, Max New York Life, a healthcare services company, Max Healthcare, and a clinical services company, Max Neeman Medical International. The Max India Group reported US$ 860 million in revenues for 2007-2008 and will soon add Max Bupa to their list of businesses. Bupa International: Since being started in 1947, The British United Provident Association, or Bupa, has grown to an international company offering health insurance, health and care services to over 10 million customers in 190 countries around the world. Anbang Property and Casualty: Founded in 2004, Anbang Property and Casualty Co. Ltd. sells accident injury, short-term health and property/casualty insurance in 37 provincial branches throughout China and more than 300 sub-branches. The company has registered capital of 5.1 billion yuan and its shareholders include Shanghai-based SAIC Motor Corp. and Sinopec Corp.