Berkshire Hathaway to Enter Indian Insurance Market

Numerous news outlets today are reporting that Berkshire Hathaway plans enter the Indian insurance market as a corporate agent of Bajaj Allianz General Insurance. Berkshire Hathaway’s majority-owned unit, Berkshire India, will sell and distribute general insurance products—initially just motor insurance—in India through its online distribution portal, Reuters reports.

The company will continuously update its business model—possibly including health, life and travel insurance and other personal lines—to meet the needs of the fast-evolving Indian insurance sector, according to Reuters.

However, Warren Buffett, Berkshire Hathaway's chairman and chief executive, reportedly told CNBC that the Omaha, Neb., holding company is always considering potential deals, but nothing is probable at the moment, according to the Wall Street Journal.

These reports have surfaced on the heels of Buffet’s annual shareholder letter, which praises the performance of his insurance business units but said the insurance industry needs to exercise greater restraint and not write business with insufficient premiums.

To read INN’s analysis of Buffet’s letter, click here.