Raising FDI cap in insurance will spur growth: Irda

Tags: News
Raising FDI cap in the insurance sector will spur growth in this industry, ensuring entry of more players, Insurance Regulatory and Development Authority said today.

Hailing the Centre's Budget 2014-15 announcement to raise the FDI cap in insurance to 49 per cent, Irda Member (Finance and Investment) Radhakrishnan Nair told reporters that "more players will come and existing players will be strengthened".

Large scale capital coming in the sector will create more jobs, he said on the sidelines of an Insurance Conclave organised by the CII here.

Earlier, delivering the inaugural address at the 'Kerala Insurance Conclave: Towards Development and Better Delivery', he said the hike in the FDI limit will help companies expand operations rapidly.

It would also help insurance companies to improve their technology, he added.

Post liberalisation, the insurance industry has witnessed impressive growth with life business growing at a rate of 18.42 per cent in the last 14 years, he said, adding that non- life insurance sector has seen a growth of 16.62 per cent.

Health insurance sector was in nascent stage and was a growing segment, he said, adding that growth in health insurance has been steady with a compounded annual growth of 33.11 per cent.

Radhakrishanan said the future agenda for the sector include leveraging technology, pricing the agriculture insurance for wider coverage, expanding the health insurance coverage by taking advantage of government sponsored schemes, launching of new products like catastrophe bonds and mechanism for tapping uninsured vehicles.

In his address, V P Nandakumar, Managing Director and CEO, Manappuram Finance Ltd said the insurance regulatory framework has evolved over the last decade to match needs of the sector.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • If the first 17 editions of Saarc were tragedies, Kathmandu was a sham

    Rarely has a regional grouping such as the South Asian Association of Regional Cooperation (Saarc) promised so much and delivered so little.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

By the power of wind, let there be light

In India, the development of wind power began in the ...

Zehra Naqvi

Being unrealistic can be good for you

Depression is a term that most people use very casually ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture