Latest News | Irdai Chairman Pitches for 100 Pc FDI in Insurance Sector
Get latest articles and stories on Latest News at LatestLY. 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.
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.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)