Warren Buffett Invests in Indian Motor InsuranceAccording to a report in the Economic Times, Warren Buffett is planning to set up a wholly-owned subsidiary in India to acquire a corporate agency licence to sell motor insurance via locally based company Bajaj Allianz.
A corporate agency on the other hand can be wholly foreign-owned. The downside is that each individual in such an agency will need to undergo training, and the agency can only promote the products of a single company. In addition, it does not underwrite its own business, but instead makes profits on commission payments.
With a population of around 1 billion India is a vast market and as car ownership increases it seems likely that Indians will be buying more motor insurance in future. For further information on India check out Visit India
Elsewhere Warren Buffett and Bill Gates have launched a campaign to get other billionaires to give away most of their money. They want America’s 400 or so billionaires to sign a Giving Pledge promising to donate at least half of their fortunes to charity. If thy do then this would triple the USA’s total amount of charitable giving. The Giving Pledge is not legally binding but Buffett has decided to set an example by promising to give away 99% of his money. Charities are delighted of course, but so far there has been no word from the children might expect to inherit the billions.
See also Warren Buffett's latest venture to teach children how to manage their money - Secret Millionaire's Club
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