Kathmandu: The Indian Finance Ministry is preparing to revise the minimum paid-up capital for insurance companies. It has been learn that the ministry is in consultation with insurance experts and IRDAI to reduce the regulatory capital requirement for various insurers.
The government has made such preparations with the aim of increasing access to insurance in the country and promoting the growth of the insurance industry. According to the businessstandard.com, the insurance penetration in India has increased from 3.76 percent in the fiscal year ended on March 31, 2020 to 4.20 percent in the fiscal year 2021.
After reducing the capital limit, the way is to open the way to increase the number of different types of insurance that focus on micro insurance, agricultural insurance or regional business.
Currently, there are 24 life insurance companies and 31 non-life insurance companies operating in India. In which the Agricultural Insurance Company of India and the Export Credit Guarantee Corporation of India are also participating.
The Indian insurance regulator has set a target of doubling the access to insurance within the next five years. To achieve this goal, policy reforms and changes have started appearing one after the other. Putting pressure on life insurers to expand access to insurance, they have set a target of fifty percent increase in insurance premiums in the next five years.
