Insurance brokers Aon to exit Indian market

Mumbai: Aon, one of the world's largest insurance brokers, has decided to exit from the Indian market due to regulatory issues.

The Netherlands-based company, which holds 26 percent stake in the Indian joint venture Aon Global, has informed about its exit plan to the Indian partner through a formal communication, a source said.

When contacted by PTI, chairman of Aon Global, Prabodh Thakker declined to comment anything on the issue except saying that "the insurance broking operation will continue to grow in the country."

Global, owned by Thakker family, has been functioning in the country's insurance broking market for more than three decades successfully.

Even before entering the joint venture with Aon in 2003, Global had been in trading relationship with the foreign company for a few decades in past.

The trading relationship was converted into a formal JV in 2003 with a view to have a long-term commitment in India which has been jolted with regulatory changes, the source said.

The RBI guidelines talk of fair and reasonable price for the domestic partner for any such exit.

Industry experts feel that low capital-investment industries, such as insurance broking, which has this type of overseas operators in the country, who can 'lift and shift' their position by regulatory changes, then how can they be healthy for Indian market and customers.