Prime Minister Narendra Modi
The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved Memorandum of Understanding (MoU) between Insurance Regulatory and Development Authority of India (IRDAI) and the US Federal Insurance Office (FIO).
An official statement said that both the countries, under the agreement, intend to share their experiences on various regulatory functions. Both the countries will also work towards providing mutual assistance, including training activities.
India and the US have also agreed to continue to facilitate cooperation on international standard-setting activities, financial stability and the development and implementation of consumer protection through sound prudential regulation of the insurance sector, the statement said, reported news agency PTI.
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IRDAI is a body set up to regulate, promote and ensure orderly growth of the insurance and re-insurance business in the country. In the US, similarly, FIO is vested with the authority to monitor all aspects of the insurance sector.
Both the countries have been in regular discussions at various political and official levels and have strong business relations, the statement said.
In India, the US is one of the major contributors to foreign direct investment. With US-based insurance companies, many insurance companies have set up joint ventures.
There is further scope for foreign investments in the Indian insurance sector after the increase in foreign investment cap to 49 per cent.
