With 100% FDI boost, MNCs to drive Capital and innovation in insurance
Mumbai: The insurance industry is poised for significant growth and innovation following the government’s decision to allow 100% foreign direct investment (FDI) in the sector. This policy shift is expected to bring in fresh capital, with many multi-national giants likely to make large investments, now that they no longer face challenges of control or securing contributions from Indian partners.According to the IRDAI annual report, India currently has 26 life insurers, 25 general insurers, and 7 standalone health insurers, with Rs 35,000 crore paid-up capital in life insurance and Rs 40,375 crore in the non-life segment. The government's move to increase the FDI limits is further clarified in the budget, which states that the proceeds of ULIPs, which do not benefit from tax exemptions, will be taxed at a capital gains rate of 12% instead of...