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In the previous nine years, the insurance industry has drawn Rs 54,000 crore in foreign direct investment. Vivek Joshi, the secretary of financial services

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<p>According to Financial Services Secretary Vivek Joshi, the insurance industry has attracted about Rs 54,000 crore in foreign direct investment (FDI) during the last nine years as a result of the government’s continued liberalization of international capital flow regulations. He told PTI in an interview that the government raised the allowable FDI level from 26% in 2014 to 49% in 2015 and finally to 74% in 2021. But he said that in 2019, the maximum amount of FDI that insurance intermediaries may accept was raised to 100%.</p>
<p><img decoding=”async” class=”alignnone wp-image-524923″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-in-the-previous-nine-years-the-insurance-industry-has-drawn-rs-54000-crore-in-fore-750×422.jpg” alt=”theindiaprint.com in the previous nine years the insurance industry has drawn rs 54000 crore in fore” width=”1074″ height=”604″ title=”In the previous nine years, the insurance industry has drawn Rs 54,000 crore in foreign direct investment. Vivek Joshi, the secretary of financial services 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-in-the-previous-nine-years-the-insurance-industry-has-drawn-rs-54000-crore-in-fore-750×422.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-in-the-previous-nine-years-the-insurance-industry-has-drawn-rs-54000-crore-in-fore-768×432.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-in-the-previous-nine-years-the-insurance-industry-has-drawn-rs-54000-crore-in-fore-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-in-the-previous-nine-years-the-insurance-industry-has-drawn-rs-54000-crore-in-fore.jpg 1024w” sizes=”(max-width: 1074px) 100vw, 1074px” /></p>
<p>According to him, as a consequence, insurance businesses got Rs 53,900 crore in foreign direct investment between December 2014 and January 2024. According to Joshi, at that time, there were 70 insurance players instead of 53 as of January 2024. According to him, insurance density climbed from $52 in 2013–14 to $92 in 2022–23, while insurance penetration increased from 3.9% in 2013–14 to 4% in 2022–23.</p>
<p>Among other measures, insurance penetration and density are often used to evaluate the degree of growth of an insurance industry in a nation. Insurance density is computed as the ratio of premium to population (per capita premium), while insurance penetration is expressed as the proportion of insurance premium to GDP.</p>
<p>The overall insurance premium more than doubled to Rs 10.4 lakh crore at the end of March 2014 from Rs 3.94 lakh crore, while the asset under management almost quadrupled to Rs 60.04 lakh billion from Rs 21.07 lakh crore in 2013–14.August 2000 saw the opening of the insurance market to private participants with the announcement of registration applications. Up to 26 percent of the shares might be owned by foreign corporations. Numerous international businesses have made investments in the insurance industry since then. One of the largest FDI flows in the insurance industry may be the most recent agreement between Zurich Insurance and Kotak General Insurance.</p>
<p>Zurich Insurance said this month that it plans to pay Rs 5,560 crore in one installment to purchase a 70% share in Kotak Mahindra General Insurance. Kotak Mahindra Bank had announced in November 2023 that it will sell Zurich Insurance a 51 per cent interest in its general insurance subsidiary for Rs 4,051 crore. This would be accomplished via a mix of share purchases and additional capital injection, with the 19 per cent stake sale to come about after three years.</p>
<p>The completion of usual conditions precedent, such as obtaining regulatory clearances from the Insurance Regulatory and Development Authority of India (Irdai) and the Reserve Bank of India (RBI), would be necessary for the planned 70% purchase.</p>


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