Insurance companies should increase capital: Irdai chief.
Insurance Regulatory and Development Authority of India Chairman Devashish Panda said that in the present times insurance companies should increase the capital base rapidly. It should be increased faster than the recent level. Therefore, these companies should approach the board for increasing the capital base.
Panda said at the 22nd annual insurance conference, “I would tell all of you (companies) to approach your board and consider increasing the capital. We anticipate that the growth in the times to come will be faster than ever before. Therefore, more capital will be needed in this area. ,
He said insurance companies setting up joint ventures with foreign partners should take advantage of the increase in foreign direct investment (FDI) limit from 49 per cent to 74 per cent. This will enable them to get more capital from their partners and this will help them grow at a faster pace.
Panda said, “The investment landscape has been revamped to attract more investment through the FDI route. Foreign direct investment limit has been increased from 49 per cent to 74 per cent. Therefore, companies having foreign partners should take advantage of this opportunity to get more investment. This will enable them to grow at a faster pace than they have been doing recently.
Earlier, Panda had said that the insurance sector needs additional capital of Rs 50,000 crore every year to double its reach in the country from the recent level. The expansion of the insurance sector in India during the year 2021-22 was 4.2 per cent which was the same as in the previous year 2020-21.
