The Insurance Regulatory and Development Authority of India (IRDAI) has urged the federal government to ease the minimal capital requirement of Rs 100 crore and allow the regulator to repair the quantity relying upon business plans of the possible firm.
Doing away with the minimal capital requirement of Rs 100 crore would permit entry of small, specialised and area of interest gamers, which might assist in elevated insurance penetration and density in the nation.
“Like in the banking system, we have microfinance institutions, regional banks, and small finance banks. So, we have all categories of banks then there are non-banking financial companies. In the insurance sector also, we should have different size players to come into the market so that they can operate in smaller geographies,” IRDAI Chairman Debasish Panda informed PTI in an interview.
Entry of smaller and specialised gamers would assist in growing insurance penetration and density, he mentioned.
