IRDA rejects renewal application of Willis India

An affiliate of the global reinsurance major Willis, Willis India Insurance Brokers, has been denied renewal of its broking licence in India for regulatory violations.

IRDA has put out details of the violations and also indicated that the partners in the insurance broking firm have parted ways.

Although Willis India goes by the name of the foreign reinsurer it is actually majority owned by Baichand Amoluk Consultancy Services (BACS) which holds 74 per cent of the firm with Willis, which is among the top three insurance brokers worldwide, holding the balance 26 per cent.

The other two top reinsurance majors are Aon Corp and Marsh & Mclennan Companies, with presence in India through similar joint ventures.

One of the Willis India's violations concerns a long pending dispute between the Export Credit and Guarantee Corporation and BACS, over long delayed payments by BACS to the state-owned export payments facilitator. The second complaint pertains to reinsurance of a King Air B 200 aircraft owned by the state insurance company and provident fund department (general insurance fund), government of Rajasthan, with New India Assurance.

According to industry experts what is interesting about the regulator's move is that it has chosen to highlight the fact that Willis India has not divulged the details of the charges to its overseas parent.