49% FDI in insurance is good move for sector & country: Kshitij Jain
Source: IRIS | 24 Jul, 2014, 01.41PM
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The union cabinet has approved to raise FDI limit in the sector to 49%. It has also approved amendment to insurance laws bill. In addition, cabinet has approved amendment to SEBI act. Cabinet nod to SEBI amendment paves way to replace ordinance. Kshitij Jain, managing director & CEO, Exide Life Insurance said, 'It is very good news that the cabinet has approved to ease the FDI cap to 49% cap on Insurance. The industry over the last 12 years has attracted over 340 billion of capital across all the private life insurance companies and over the next five to ten years the industry requires as much if not more in terms of fresh capital to be able to fund its growth and its expansion. The easing of the FDI cap to 49% in the insurance sector will ensure overall development not just of the sector but the country at large.
With an increase in the limit, the insurance industry expects to get not only the capital but also technical and product expertise of foreign partners. FDI in insurance would also increase the penetration of insurance in India, where the penetration of insurance is abysmally low with insurance premium at about 3% of GDP against about 8% global average. The industry at this stage does need long-term capital for continued growth and expansion which only FDI can bring in.' Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.
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