After years of promises, the insurance industry in India is on the cusp of receiving a new lease of life in the form of the Insurance (Amendment) Bill to ease the entry of foreign players.
The Indian market has been stuck for some years in a political quagmire. Now, with the newly elected government pushing for economic reforms, there are indications that the Bill will be passed in the winter session of the parliament to increase Foreign Direct Investment (FDI) limit in insurance sector from 26% to 49%.
The proposal will provide Indian insurance companies with a platform to readily access new capital, increase competition and attract fresh investments in health insurance sector. The Bill would also allow foreign companies to invest in reinsurance companies.
All of this should attract new business opportunities and increase the rate of growth of the insurance market, which currently stands at around USD 66.4 billion.