Battered India insurers need more than foreign funds

India’s proposal to allow more foreign investment in its US$41 billion insurance business provides a lifeline for an industry starved of capital and squeezed by regulation - but it may not pass parliament and it may not be enough.

India’s insurance business was full of promise when it was thrown open to competition in 2000, but has instead been brought to its knees by losses, regulatory change, uncertainty and a sharp slowdown in economic growth.

Many firms are fed up and looking for the exit.

via Business feed http://www.scmp.com/business/banking-finance/article/1057801/battered-india-insurers-need-more-foreign-funds