IRDAI is examining the possibility of allowing private equity (PE) firms to buy stakes in Insurance Companies. A decision on this is likely to be taken in a month’s time.
On the last of bidding SBI Life Insurance Company was subscribed 3.5 times of the IPO which aims to mop up Rs.8400 crores for over 29.5 crores shares against the issue size of 8.82 crores.
IRDAI may allow LICI to maintain its stake in about 40 entities beyond the 15% limit to comply with the regulatory limit of Insurance Companies.
In order to retain a solvency level of 1.65 times the General Insurance Sector needs approximately Rs.37000 Crores of capital in next 5 years.
Life Insurance growth rate of new business on annualized basis for F.Y. 18 is supposed to 15-18% which is much higher that the growth rate of 14% in F.Y. 2017. Crop Insurance in Agro Sector requires Agro Insurance Regulator for ‘Pradhan Mantri Fasal Bima Yojna (PMFBY) since this insurance has multiple problems on regional as well as block level with utmost uncertainty.
As the tax rate changes to 18% from 15% after the implementation of GST the Insurance Policy premium rates have marginally increased. This will not have an impact on the buying habits of the people as Insurance is a necessity and people will have to buy insurance products from the companies.
For better resolution of customer grievances IRDAI may think of opening Customer Grievance Centre in major cities. The job of these centre would be to guide, aid, advise consumers in case of any dispute. IRDAI is having huge fund for customer awareness. Some fund may be utilised for increasing customer satisfaction.
