Insurance Regulatory and Development Authority of India (IRDAI) Chairman Debasish Panda, in a recent interview with CNBC-TV18, said that the insurance regulator is in favour of giving composite licences to insurance companies. Composite licences allow the insurance companies to offer both life and general insurance policies.
He also revealed that IRDAI has been getting a lot of queries regarding setting up new insurance companies. Recently, IRDAI gave approval to a new insurance company after five years while 18 others are in the pipeline. The last approval to a new insurance firm was given in 20187, Panda revealed.
The government should relax the minimum capital requirement of Rs 100 crore and allow the regulator to set the amount based on the business goals of the prospective company, suggested Panda. “Eliminating the Rs 100 crore minimum capital requirement would enable the admission of small, specialised and niche businesses, increasing insurance penetration and density in the nation,” he said.
In its meeting on Friday, IRDAI approved a number of proposals, including allowing banks to partner with nine insurance companies. Further, the insurance regulator allowed private equity funds to invest directly in insurance companies, and allowed insurance companies to raise alternative investments like subordinated debt and preference shares without first obtaining regulatory approval, Moneycontrol reported.
Read all the Latest Business News here