Willis India To Appeal Non-renewal Of License

NU Online News Service, Sept. 8, 3:32 p.m. EDT

Willis Group Holdings said yesterday that it will appeal last week's decision by India's Insurance Regulatory & Development Authority (IRDA) to not appprove the license renewal application of the broker's joint venture in India.

The IRDA said it is "not inclined to accept" the license renewal for Willis India Insurance Brokers Pvt. Limited, in which Willis holds a 26 percent stake.

The IRDA order, dated Sept. 1, cited complaints made against Willis' joint venture partner in the course of doing business. However, Willis India will be allowed to appeal the decision.

Willis India said it is taking all steps necessary and is moving forward expeditiously to appeal to the IRDA and is seeking its support and guidance to ensure business continuity.

Willis said it is extremely concerned about the IRDA findings against its joint venture partner, Bhaichand Amoluk Consultancy Services Pvt. Ltd., which holds a 74 percent stake in Willis India.

Willis said it is in the process of terminating its current relationship with Bhaichand Amoluk as a result of a series of management differences. The broker went on to say that it is taking decisive action to find the best solution to seamlessly transition its Indian business and staff to a new joint venture with an established and highly respected organization in India.

Willis India, the group's retail broking operation, employs more than 100 people in nine offices across the country. In addition, Willis Processing Services, the company's global operations centre in Mumbai and a separate business entity to Willis India, has grown to 1,300 employees since its establishment 18 years ago.

"Willis has been in India for nearly two decades and in that time has established a reputation for excellence, integrity and transparency. We are therefore appealing the IRDA's decision that it is disinclined to renew the license of Willis India and are working with them to ensure the well-being of our clients and staff in the process," said Andrew Hicks, managing director of Willis India, in a statement.