Object reference not set to an instance of an object. Online Stock Broker - Stock Broking, Best Share Bazaar Brokers In India
  • About Us
  • Careers
  • Downloads
  • Refer & Earn
  • Contact Us
  • SMC open account icon Open an A/C
    • Open an A/C
    • Trading A/c
    • Mutual Fund A/c
    • NBFC A/c
    • NPS A/c

Budget News

  • Insurance sector requires Rs 50,000 crore capital per year, appeals conglomerate to pump money, says IRDAI
  • January 20,2023  14:40

  • To double the penetration of the insurance sector in the next five years, an annual investment of Rs. 50,000 crore capital will be required, IRDAI chairman Debashish Panda said on Friday.

    Panda appealed to business conglomerates to channelise funds into the sector, saying the return on equity is at a healthy 14 per cent for life insurers and 16 per cent for non-life, while in the case of top five companies it goes up to 20 per cent as well.

    It can be noted that the insurance sector is a very competitive industry, with nearly two dozen life insurance companies and over 30 non-life ones. The overall penetration for insurance is 4.2 per cent as of FY21-end. If we have to double the penetration, every year there is a need to infuse an additional Rs 50,000 crore, Panda said addressing the annual insurance and pension summit organised by industry lobby CII.

    He said the number has been arrived at after doing an analysis of current GDP growth, inflation and penetration, and also added that he will meet the heads of insurers after March to prepare in pursuit of the same requirements.

    I'd like to reach out to the conglomerates who are present in this country, individual investors who are interested to invest their money, he said.

    The Insurance Regulatory and Development Authority of India (IRDAI) chief said, the target is to double penetration in the next five years, and added that it is possible to insure all by 2047, when the country will be celebrating its 100th anniversary of independence.

    India is at present the tenth biggest market in the world and will be the sixth biggest by 2032, Panda said.

    Industry is content serving people with traditional or old products, but needs to analyse the newer needs of protection as well, he exhorted.

    He asked the players to engage with housing regulators to try and make property insurance compulsory, or impress the need for property insurance with the Union housing ministry.

    Insurers also have to go beyond the present distribution arrangements with scheduled commercial banks, and have bancassurance arrangements with non-bank lenders, co-operative banks and also payment aggregators.

    We have to reimagine the way insurance is distributed, Panda said, exhorting the industry to make the pie larger rather than fleecing business from competition.

    Panda also asked the insurers to create grievance Redressal cells with a separate set of officials in place.

    There is also a need for financial sector participants to work together synergistically for deepening the penetration.

    Powered by Capital Market - Live News

Top News
Economy News

Follow us:

  • fb icon
  • Twitter icon
  • Linkedin
  • you tube


SMC Global Securities Ltd: SEBI Reg. No. INZ000199438, Member: BSE (470), NSE (07714), MSEI (1002), NCDEX (00021) & MCX (8200). DP SEBI Regn. No. CDSL/NSDL-IN-DP-130-2015, SMC Research Analyst Registration- INH100001849 Mutual Funds Distributor ARN No. 29345. SMC Insurance Brokers Pvt. Ltd. IRDAI Regn. No: DB 272/04 License No. 289 Valid upto 27/01/2026. • Real Estate Advisory services are offered through SMC Real Estate Advisors Pvt. Ltd.

Registered Office:11/6B, Shanti Chamber, Pusa Road, Delhi-110005. CIN : L74899DL1994PLC063609 Tel +91-11-30111000 . For any complaints email – igc@smcindiaonline.com, website: www.smctradeonline.com Disclaimer: Investments in securities market are subject to market risks, read all the related documents carefully before investing. PMS is not offered in commodity derivative segment. Insurance is the subject matter of solicitation.


Toll-free : 1800-11-0909
Email: contact@smctradeonline.com

Plus Minus 
Copyright ©2016 SMC. All Rights Reserved | Disclaimer | Privacy Policy | RMS Policy | Copyright| Testimonials| Sitemap| Grievance| design agency: triverse| Powered by C-MOTS Infotech (ISO 9001:2015 certified)

Open my trading account now!  X 

* All fields are compulsory