Japanese insurer, Sompo enters Indian non life insurance industry

After US based Principal Financial Group making a bid in the Indian Insurance sector, it is now the turn of a Japanese insurer, ‘Sompo’ to make its hold in India. ‘Sompo’ is looking at the ventures available to enter the non-life insurance segment. It is considering three local banks for its JV -Allahabad Bank, Indian Overseas Bank (IOB), Karnataka Bank and Dabur group. Industry sources pointed out that Allahabad Bank will hold a stake of 30%. IOB, Karnataka Bank and Dabur will hold stake of 19%, 15% and 10% stake respectively. Sompo will hold 26% stake. Presently, Allahabad Bank has tied up with National Assurance Company for bancassurance and Karnataka bank has tied up with Bajaj Allianz Life Insurance. If this JV materializes, the existing bancassurance tie-ups may have cracks. This insurer will be a third Japanese Company to make its presence in India. The other two being-Tokio Marine and Mitsui Sumitomo.