The IRDAI is engaged in discussions with the federal government to ease the INR1bn ($12.2m) minimal capital requirement for new insurers. It additionally asks that the trade regulator be allowed to decide the quantity of capital relying upon the business plans of the potential insurers.
“The regulator can frame regulations based on the size of the company that the promoters are going to set up. For a microinsurance company, it may be X amount, regional companies operating in a bigger larger geography could be Y amount,” IRDAI chairman Debasish Panda instructed Press Trust of India (PTI) in an interview.
The goal is to allow entry into the Indian market of small, specialised, and area of interest gamers, which might assist in elevated insurance penetration and density in the nation, reported PTI.
“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-sized players come into the market so that they can operate in smaller geographies,” Mr Panda stated.
