With the Cabinet giving its nod for raising foreign direct investment in the insurance sector to 49 per cent from 26 per cent, the industry is poised to attract more funds from abroad.
The Cabinet clearance on the Insurance Amendment Bill is in line with the announcement made by the Finance Minister during the budget speech.
“While the FDI change will need the clearance in both the houses of Parliament, today’s [Thursday’s] Cabinet ratification to increase FDI up to 49 per cent shows the current government’s keenness to move quickly on the budget announcement,” said Deepak Mittal, Managing Director & CEO, Edelweiss Tokio Life insurance.
“With low levels of insurance penetration, added investments may well widen and deepen reach, as well as spur investments for innovation and greater efficiencies,” Mr. Mittal added.
“The hike will enable further product innovation, and bring in the best of global practices in the country. The Bill is an attempt at making insurance more transparent and customer-friendly, which will create a mutually beneficial environment,” said Munish Sharda, Managing Director & Chief Executive Officer, Future Generali Life Insurance.
Bhargav Dasgupta, Managing Director and CEO, ICICI Lombard General Insurance, said “one will await the passage of the Insurance Amendment Bill, there are other important provisions of the proposed Insurance Bill over and above the capital structure that will benefit companies and therefore customers.”
