As part of the expansion, HDFC Life has received approval from the sector regulator Insurance Regulatory and Development Authority (Irda) to establish a subsidiary in the Gulf.
With this approval, HDFC Life will become the first private insurer to begin full-fledged operations in non-Indian markets.
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Amitabh Chaudhry, MD & CEO, HDFC Life said that they will also require approval from local regulator to set up the subsidiary.
Chaudhry said that the firm will make investments in such markets where opportunities exist and added that the NRIs and expats in the Gulf market are under-served and present an opportunity.
"By being present there, we will be giving a message to the NRI community that we are here for the long term. We see this as an opportunity and have had a representative office there for the last 18 months and over a period of time want to convert it into a full-fledged operation," he added.
According to Irda guidelines, the net worth criteria for a life insurance company to have international presence is INR 500 crore and the registered Indian insurance company ) should not suffer from any adverse report of the Authority for 3 years out of the last 5 years from the date of application.
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By GlobalDataAlso, the foreign subsidiary company’s paid-up capital must be subscribed to by an Indian insurance company.
