The Insurance Regulatory and Development Authority of India (IRDAI), in its bid to achieve 100% insurance coverage in the country by 2047, has called upon incumbent players to augment capital while inviting new players to enter the sector.
“I would like to ask all of you to go to your boards and think in terms of augmenting your capital because going forward we expect the growth will be speedier than before hence more capital needs to be pumped into the sector,” IRDAI Chairman Debasish Panda said on Wednesday.
“The investment landscape is also being rebuilt to attract more investment through the FDI route. The limit has been enhanced to 74% from 49%. So, those companies which have a foreign partner should look at this opportunity to bring in more capital and grow even faster than they have been growing,” he said at FINCON 2023 organised by FICCI in Mumbai.
He said the switching over to International Financial Reporting Standard (IFRS) is also underway and all of this would help the industry, going forward, in efficient use of capital and also help the companies and the regulator to have a real-time profile of risk.
Mr. Panda said in FY23, three new insurance companies had been given license including two life and one general. And, 20-odd applications are being evaluated.
“The last life insurer was registered in 2011 and now two more in 2023. Last general insurance license was given in 2017 and now a new one in 2023,” he said.
He said industry must create products that are affordable, accessible and available to a the masses and urged the companies to explore the rural market where vast potential exists.
He underscored the importance of state and district level coordination for enhancing insurance penetration. He urged the industry members to use the vast network of ASHA workers and Aanganwadi workers to reach the last mile for deeper penetration and a relationship of trust which is paramount in insurance business.