In order to give policyholders more choice and affordability, the Insurance Regulatory and Development Authority of India IRDAI approved several proposals such as allowing direct investment by private equity funds into insurance companies, allowing subordinated debt and preference shares without prior approval, and increasing the maximum number of tie-ups for corporate agents and Insurance Marketing Firms IMF to 9 earlier 3 and 6 insurers earlier 2 insurers.
Bhargav Dasgupta, MD- CEO ofICICI Lombard General Insurance Company said these reforms will improve ease of doing business, free up distribution models, encourage customer centric innovations and make the sector attractive for investment. The regulator has addressed a number of long pending issues of the industry in one stroke! The amendments to regulations relating to the dilution of promoter stake up to 26 per cent and making SPV mode for PE funds optional will result in more funds flowing into the sector, according to experts.
IRDAI is playing a pivotal role in aligning the industry to the needs of India's life insurance customers, according to Tarun Chugh, MD CEO, Bajaj Allianz Life Insurance. The changes being introduced for the benefit of the customers and the industry at large, such as expansion of partnership options for corporate agents and IMFs, relaxations for incorporating new companies and attracting more capital, are just a few of the changes being introduced. We welcome these changes and we are aligned to the agility of the regulators to further advance the industry. The changes are welcomed by industry veteran Kamesh Goyal, Chairman, Go Digit General Insurance, said the new proposals approved by the IRDAI in the 120th Board Meeting are a watershed moment and will be a new era for the insurance industry. The tie-up limits for corporate agents and insurance companies to nine and six insurers each for life, general and health insurers will give policyholders the choice of innovative products offered by insurers and aid in the government and IRDAI's vision of accelerating insurance penetration in the country.