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.

EDITORIAL OF THE DAY

  • India is taking China head on with its Japan aided Asia–Africa growth corridor

    Collaborative pursuit of Asia–Africa growth corridor in partnership with Japan is significant in more ways than one.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: Islam’s dance of death

It is a short walk between victim hood and blood ...

Ananda Majumdar

Walking the tightrope

For perhaps the most voluble antagonist of Narendra Modi at ...

Zehra Naqvi

Mindful meditation in everyday life

Amid the vast multitude of tasks and huge amounts of ...