18 New Insurance Companies are in the Pipeline for IRDAI approval
Updated On Dec 01, 2022
The Insurance Regulatory and Development Authority of India is all set to bring a revolution to the insurance sector by granting a single license to operate both life and general insurance companies. The chairman of IRDAI, Debashish Pande, stated that 18 new insurance companies may come into existence; however, no timelines were mentioned.
Talking about the same, Mr Panda said that after five years, today we have approved Kshema General Insurance Company, and there’s another one ready. The proposal couldn’t be moved forward as their capital will take another 15 days to arrive, but it’s in the pipeline. We hope it gets cleared in the next board meeting, along with 18 more that are in the pipeline."
In addition, he mentioned that the solvency ratio has fallen from 0.8 percent to 0.6 percent, resulting in the non-guaranteed unit link business emancipating about Rs. 1500 crore.
The Insurance Regulatory and Development Authority of India (IRDAI) has advised the government to ease the minimum capital requirement of Rs. 100 crore and allow the regulator to decide the amount according to the business plans of the prospective company. Doing so will permit the entry of small, qualified, and industrial players into the insurance industry. The customers will get the advantage of new insurance plans launched at low and discounted premiums.