With this, HDFC Life might become the first Indian private insurer to have an international presence. Though companies have set up representative offices in other countries, none of them have begun full-fledged operations in non-Indian markets.

Amitabh Chaudhry, MD & CEO, HDFC Life, said, "We are planning to set up a subsidiary in the Gulf. Irda has given us permission for that."

However, Chaudhry said the company requires permission from the local regulator and the process has already begun for that. According to them, the West Asia market was “interesting” for them, because they believed that non-resident Indians (NRIs) constitute substantial part of the population and it was an under-served market.

“By being present there, we will be giving a message to the NRI community that we are here for a long term. We see this as an opportunity and have had a representative office there for the last 18 months and over a period of time want to convert it into a full-fledged operation," he explained.

Though the insurer is aware that it is a long drawn out process, the chief executive believes that the first important step has been taken.

The company has identified markets such as the UAE, Oman, Bahrain, Qatar and others. Irda was approached by Indian insurance companies, seeking permission to open offices outside India. Following this, Irda issued a separate set of guidelines for insurance companies to go abroad with their business.

According to Irda guidelines, a foreign insurance company means a company registered outside India whose paid-up capital is subscribed to by an Indian insurance company.

This includes a foreign subsidiary company wherein the Indian insurance company has a holding of more than 50 per cent of its paid-up capital or is in a position to control the composition of its board of directors.

Experts say developing countries in Asia and Latin America could be areas where Indian insurance companies would try for expanding. Regions like Middle East, South East India and countries like Sri Lanka, Bangladesh and Nepal that have some similarities with the Indian business would be targeted.