The chairman of India’s Insurance Regulatory and Development Authority (IRDAI), Debasish Panda, has suggested allowing 100% foreign direct investment (FDI) in the insurance industry. This move could bring more money and expertise into the sector, helping it grow faster. Currently, foreign companies can only own up to 74% in Indian insurance firms.
Panda believes that increasing FDI limits will attract global insurers to invest more in India. This could lead to better products, more competition, and improved services for customers. More investment could also help spread insurance coverage in rural areas, where many people still lack protection.
India’s insurance market is one of the largest in the world but remains underdeveloped compared to other major economies. Only about 4% of Indians have life insurance, and health insurance coverage is also low. Experts say that with more foreign funding, companies can expand their reach and offer affordable plans.
The government has been working to reform the insurance sector in recent years. Raising the FDI limit to 100% would follow similar steps taken in other industries. However, some critics worry that foreign dominance could hurt local insurers. Panda assured that strong regulations will remain in place to protect customers and ensure fair competition.
If approved, this change could make India a more attractive destination for global insurance giants. It may also create jobs and improve financial security for millions of Indians. The proposal is now under discussion, and a final decision is expected soon.
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