“Contributing to India’s goal of achieving Insurance for All by 2047 the decision to raise FDI in insurance to 100 per cent will drive greater capital infusion into the sector. This move will not only deepen investments but also foster innovation, enhance competition, and accelerate insurance penetration,’‘ Prashant Tripathy, MD & CEO, Axis Max Life Insurance told businessline.
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“We welcome this progressive reform, which aligns with our commitment to delivering greater financial security to Indians. With strengthened investment, the industry can further drive digital transformation, develop customer-centric solutions, and expand its reach to those who need it most,’‘ he added.
Greater foreign participation, will accelerate the adoption of global best practices, introduce innovative products, and elevate customer service standards. Additionally, the mandate to invest premiums within India ensures that these funds contribute to domestic economic growth and infrastructure development, Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance, said.
The next five years present a significant and exciting opportunity to propel the industry forward onto greater heights. According to Anup Rau, MD & CEO, Future Generali India Insurance, the hike in FDI limit will help provide a “huge” fillip to the sector.
“With just over 60 insurers operating in both life and general insurance sectors, and many of them functioning as joint ventures, the shortage of capable and willing local partners is evident. Permitting 100 per cent FDI would be a game-changer, given its potential to address the challenge global insurers face in finding suitable local partners,’‘ Rau said.
The government’s proposal to provide healthcare to gig workers of online platforms under PM Jan Arogya Yojana is a significant initiative to help boost health insurance penetration and protection in the country, he added.
“The increase of the limit from 74 per cent to 100 per cent should not just be viewed as an incremental 26 percentage points. This is expected to bring in more players and more capital from existing players supporting INDIA’s vision of “Insurance for all by 2047,’‘ Balamurugan Shanmugam, Chief Investment Officer, Aviva India said.
“In addition to bringing in much-needed FDI into the country, this will also bring in better technical capabilities and new propositions for the overall benefit of the customers,’‘ Shanmugam added.
Disappointed
There is a flip-side too. “We expected a big push to health insurance by heeding to the long-pending demand for removal of GST on health insurance premium. This would have made a huge positive difference to push health insurance. The wait continues,’‘ CEO of a private sector insurer said. Similarly, the request for removal of GST on term policies was also not considered.
