While proposed reforms by IRDAI would allow for full foreign ownership of insurance companies in India, many international investors may still prefer to enter the market through joint ventures with Indian partners, particularly in the initial stages, says the global law firm Freshfields.
Indian insurers have asked the government to issue new sovereign debt instruments, including zero-coupon bonds, to broaden investment opportunities available to them and to help them manage long-term risks, reported Bloomberg quoting people familiar with the matter.
Finance Minister Nirmala Sitharaman has said that the cost of insurance to policyholders is expected to fall if the GST Council recommends a reduction in the GST rate on health and life insurance policies.
India's biggest general insurer, the state-controlled New India Assurance, with a claims settlement ratio of 98.74% of the total amount claimed in 2023, led the health insurance sector, according to data released by the Insurance Brokers Association of India (IBAI).
The future looks promising for the life insurance industry in India with several changes that will transform the way the industry conducts its business and engages with customers, says the India Brand Equity Foundation (IBEF).
The Indian government plans to amend insurance laws in the ongoing session of Parliament to facilitate a unified licence for insurers and raise the foreign direct investment (FDI) limit to 100% from the current 74%, reported Reuters quoting two government sources.
Intense competition is reshaping the insurance landscape in India, with the IRDAI's plan to issue more than 20 new licences expected to further disrupt the market, says global consulting firm McKinsey & Company.
The Indian InsurTech landscape has made significant strides, with 150+ InsurTechs and a 12x increase in revenue over the past five years to reach $750m and a cumulative valuation of $13.6bn, says Boston Consulting Group (BCG).
Listed life insurers in India have been unable to generate sufficient returns to cover their cost of equity in the past two to three years, according to a report released by the global management consultancy, McKinsey & Co.
The expansion of state-owned company Life Insurance Corporation of India (LIC) into the health insurance domain could significantly boost its market share in the country, by capitalising on its existing customer base, says GlobalData, a data and analytics company.