Irdai Pitches for 100% FDI in Insurance Sector
By Rediff Money Desk, Mumbai Nov 08, 2024 17:46
Irdai Chairman Debasish Panda advocates for 100% FDI in insurance to attract capital and achieve 'insurance for all' by 2027. He highlights the need for more players and the potential for consolidation in the sector.
Mumbai, Nov 8 (PTI) Irdai Chairman Debasish Panda on Friday pitched for 100 per cent foreign direct investment in the insurance sector, saying a lot of capital is needed to achieve the goal of 'insurance for all' by 2027.
Speaking at Business Standard's annual BFSI event, Panda said insurance is a capital-intensive sector, and the country would need more players in the segment to increase insurance penetration.
India gradually started opening the insurance sector by allowing private and foreign investment in 2000. Currently, up to 74 per cent FDI is permitted in general, life and health insurance.
"We need a lot of capital, which means we need a lot of new entities to come in. There may be some consolidation also happening. So, all of that churning will happen.
"And if the FDI route is also opened that will only augment the domestic investment as well, otherwise, domestic investment may get crowded out. ... perhaps its time to open up for 100 per cent FDI so more players who want to come and operate on their own terms without trying to look for an Indian partner that may also help," he said.
Panda further said achieving universal insurance will be crucial in India's journey towards a 'Viksit Bharat' by 2047.
He also said the digital platform Bima Sugam, an initiative of Irdai, will be instrumental in revolutionising the insurance sector by acting as a comprehensive public infrastructure for policyholders.
According to him, the initiative will empower customers to explore a variety of products in one marketplace, independent of intermediaries tied to specific companies, while also allowing distributors to conduct transactions more efficiently.
Speaking at Business Standard's annual BFSI event, Panda said insurance is a capital-intensive sector, and the country would need more players in the segment to increase insurance penetration.
India gradually started opening the insurance sector by allowing private and foreign investment in 2000. Currently, up to 74 per cent FDI is permitted in general, life and health insurance.
"We need a lot of capital, which means we need a lot of new entities to come in. There may be some consolidation also happening. So, all of that churning will happen.
"And if the FDI route is also opened that will only augment the domestic investment as well, otherwise, domestic investment may get crowded out. ... perhaps its time to open up for 100 per cent FDI so more players who want to come and operate on their own terms without trying to look for an Indian partner that may also help," he said.
Panda further said achieving universal insurance will be crucial in India's journey towards a 'Viksit Bharat' by 2047.
He also said the digital platform Bima Sugam, an initiative of Irdai, will be instrumental in revolutionising the insurance sector by acting as a comprehensive public infrastructure for policyholders.
According to him, the initiative will empower customers to explore a variety of products in one marketplace, independent of intermediaries tied to specific companies, while also allowing distributors to conduct transactions more efficiently.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Mishtann Foods L
- 9.84 (+ 9.94)
- 183705553
- Thinkink Picturez
- 2.13 (+ 4.93)
- 78809169
- Srestha Finvest
- 0.90 ( -4.26)
- 78463021
- Rajnish Wellness
- 1.95 (+ 4.84)
- 47469220
- Vodafone Idea L
- 8.01 ( -0.87)
- 30791424
MORE NEWS
India Data Center Market Attracts USD 60...
India's data center market has attracted USD 60 billion investment in the past six...
India's EV Industry to See Rs 3.4 Lakh Cr...
Colliers India reports a massive Rs 3.4 lakh crore investment in India's EV and...
BEML Wins Rs 136 Cr Defence Contract for HMV 8x8
BEML secures a Rs 136 crore contract from the Defence Ministry to supply indigenously...