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Industry welcomes Govt decision on FDI in insurance

Posted on Oct 05, 11:57AM | UNI

The increase of FDI in Insurance sector by the Union Government today has been welcomed by the industry as a step in the right direction, KPMG India Partner Shashwat Sharma commenting on the decision said it has been a long pending step and would boost the confidence of global insurers and investors.

'The insurance industry has been struggling for a while on capital, which will now be forthcoming' he said adding that more product and channel innovation with increse in competition is expected.

Dr Amarnath Ananthanarayanan, CEO and MD, Bharti AXA General Insurance said 'Given the policy paralysis the slew of regulatory announcements including this one pertaining to insurance will surely strike the right cord with all the stakeholders.' The move would increase FDI in insurance from the foreign players in all technical aspects of the insurance business including product development and claims settlement mechanisms. This is currently an area of improvement for the Indian General Insurance Industry.

The other announcements including creation of 'use and file' guidelines for standard products and banks being allowed to sell the products of multiple insurance companies acting as a broker, are much required improvements for growing insurance penetration in India. These will provide the customer with more choice and help.