The Covid-19 pandemic has also created growth opportunities for the sector. The insurance sector categorised into life, general and health insurance, comprises 54 insurance companies of which 24 are life insurers. The life insurance policies have increased and approximately 28 million new policyholders were acquired by the insurance companies in the FY 2020-21.
A notable reform, ‘the FDI cap’ for the insurance sector, has increased from 49 per cent to 74 per cent. The increase in the limit was primarily focused on attracting foreign investors to this sector, as it is highly capital intensive and has a long gestation period. Insurance companies take seven to ten years to break even and start becoming profitable.
This reform will enable insurance companies to raise funds to ensure maintaining their solvency in line with their growing business needs and also augment foreign inflows and help attract more foreign companies. In order to bring in more clarity on the Indian owned and controlled aspect, announced vide the October 2015 guideline, the Insurance Regulatory and Development Authority of India (IRDAI) vide circular dated 30 July 2021, omitted the said concept, which was a grey area and open to varied interpretation and disputes.
Denne historien er fra April 23, 2022-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra April 23, 2022-utgaven av Businessworld.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
MEMORIES & IMPRESSIONS
Ratan Tata was an exceptional human being. He was a visionary leader, esteemed industrialist, and a humanitarian, who left an indelible mark on India and the world.
The Robotaxi Market
The robotaxi market is shaping up to be a high-stakes battleground as tech giants and automakers race to transform urban mobility.
And the Nobel Prize Goes to AI
The recent Nobel Prize T awards to AI pioneers affiliated with Google have sparked a broader conversation about Big Tech's influence on research and the limitations of traditional prize categories.
Ola Electrified
Once considered a trailblazer in India’s electric vehicle (EV) ecosystem, Bhavish Aggarwal’s Ola Electric now faces a major accountability crisis.
Sharp Slide in Industrial Output on Eve of Deepavali
India’s index of industrial production (IIP) saw a sharp reversal in August, contracting by 0.1 per cent, in stark contrast to the 4.7 per cent growth in July, mostly because of significant contractions in mining and electricity generation.
Heralding the Solar Era with Sustainable Electrification
RAJEEV KASHYAP on the economics of solar power, the hurdles in scaling it, and much more
A WELL-GREASED MACHINE
The OmniBook X14 laptop runs on first-generation Snapdragon X Elite, which bets big on Al-enabled productivity and battery life, but falls short when it comes to overall experience, says Deep Majumdar
DO NOT LETA HEALTH CRISIS RUIN YOUR FINANCIAL HEALTH
For a family of four living in a metro, it is recommended to opt for a family floater health insurance plan with a sum insured of at least Rs 15-20 lakh
Disruption Ahead: Beyond Organisation Charts and Structures
ALBERT EINSTEIN FAMOUSLY said, “We cannot solve our problems with the same thinking we used when we created them.
Dr. Rahul Shivajirao Kadam: A Visionary Leader Blending Sustainability, Innovation, And Social Empowerment
We are on the stage of global warming, and these technologies not only help prevent further damage but also leave behind a better environment for future generations.