The Government's move to increase the Foreign Direct Investment (FDI) cap to 49% has struck a chord with leading global insurance providers. Chairman of Insurance Regulatory and Development Authority (IRDA), Mr. T. S. Vijayan, opined that the Indian insurance market is set to welcome new insurance companies.
At a global conference of actuaries, Mr. Vijayan stated that discussions are underway with new insurance companies who could soon apply for licenses. He also said that post the recently passed ordinance that changed the FDI cap, many new players have expressed an interest to become a part of the Indian insurance market.
Speaking about drafting fresh regulations according to the ordinance, Mr. Vijayan said, "We have to cover 14 regulations. We will either make fresh regulations or amend the existing ones. Some of them are very critical and have to be done immediately."
Mr. Vijayan iterated the need for a policy on the lines of Pradhan Mantri Jan Dhan Yojana for the insurance sector. He also voiced his views on encouraging property and catastrophe insurance.