Last Update: November 30, 2022, 6:01 pm IST
He also revealed that IRDAI has been receiving a lot of queries regarding setting up of new insurance companies.
In its meeting on Friday, IRDAI approved several proposals including allowing banks to partner with nine insurance companies.
Insurance Regulatory and Development Authority India (IRDAI) Chairman Debasish Panda recently said in an interview with CNBC-TV18 that the insurance regulator is in favor of giving composite licenses to insurance companies. Composite licenses allow insurance companies to offer both life and general insurance policies.
He also revealed that IRDAI has been receiving a lot of queries regarding setting up of new insurance companies. Recently, IRDAI approved a new insurance company after five years, while 18 others are in the pipeline. Panda disclosed that the last approval for a new insurance company was given in 20187.
Panda suggested that the government should relax the minimum capital requirement of Rs 100 crore and allow the regulator to determine the amount based on the business goals of the prospective company. “Abolishing the minimum capital requirement of Rs 100 crore will lead to increased penetration of small, specialized and niche businesses, insurance penetration and density in the country,” he added.
In its meeting on Friday, IRDAI approved several proposals including allowing banks to partner with nine insurance companies. In addition, the insurance regulator allowed private equity funds to invest directly in insurance companies, and allowed insurance companies to raise alternative investments such as subordinated debt and preference shares without first obtaining regulatory approval, Moneycontrol reported.
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