Edelweiss Tokio Life, the 24th life insurance company in India which is a JV between Edelweiss and Tokio Life , has received the R2 licence from India. Before an insurance company can commence operations, it needs to go through a 3 stage licensing process- R1, R2 and R3. At the R1 stage, IRDA evaluates the promoters and at the R2 stage, evaluates the business model of the company. In a few months, Edelweiss Tokio Life should be in a position to write life insurance business.
As mentioned in an earlier blog, EdelWeiss Tokio Life is led by Deepak Mittal who was earlier the CFO of Edelweiss. It will be interesting to see the strategies of Edelweiss evolve in this reasonably competitive market where the annual premiums are expected to reach Rs 10 lakh crores from the current level of Rs 2 lakh crores in the next decade. The acquisition of Anagram Stock Broking by Edelweiss should give some degree of distribution presence to the life insurance venture.