At a time when India is desperately trying to woo foreign investors in various sectors to boost its economic growth, Warren Buffett’s prime investment vehicle Berkshire Hathaway Inc has decided to close its online insurance broking business in India. In March 2011, Berkshire had launched its India insurance venture, Berkshireinsurance.com.
The Insurance Amendment Bill, which suggests hiking foreign direct investment (FDI) cap from exiting 26% to 49%, is pending in the Upper House. Due to the ownership restriction, Berkshire had invested only a small amount in the sector to sell products of Bajaj Allianz General Insurance Company rather than to enter into the insurance business itself with an Indian company.
