Insurance broking body opposes 100% FDI in the sector

In an earlier missive to the chairman of the insurance regulator IRDAI SC Khuntia, the IBAI has said, `` An online survey of brokers was conducted where a slight majority (51%) were against FDI being increased and a significant majority (49%) were in favour. The IBAI work on the basis of the majority view and it is this context that the IBAI would like to reiterate the stand that it has consistently taken which is that FDI at this stage is not recommended for the industry.

 

New Delhi:

The Insurance Brokers Association of India(IBAI), the representative body of over 400 Indian insurance brokers including joint ventures with foreign partners, in a majority has staunchly opposed the government move to increase the foreign direct investment (FDI) 100 per cent from 49 per cent in the insurance intermediaries sector.

 

The government on Tuesday has notified its decision to raise the FDI limit 100 per cent which was announced in the Budget 2019-20 by the union finanance minister Nirmala Sitharaman. 

 

In an earlier missive to the chairman of the insurance regulator IRDAI SC Khuntia, the IBAI has said, `` An online survey of brokers was conducted where a slight majority (51 per cent) were against FDI being increased and a significant majority (49 per cent) were in favour. The IBAI work on the basis of the majority view and it is this context that the IBAI would like to reiterate the stand that it has consistently taken which is that FDI at this stage is not recommended for the industry.''

 

There has been considerable discussion amongst insurance brokers on the proposed increase in FDI to 100%. After the budget announcement the IBAI Board has reached out extensively to broker members to get their feedback and understand concern, said IBAI.

 

The IBAI will work closely with broker members to determine how best to address any concerns, said IBAI.

 

Players in the industry expect that there may be a larger consolidation in the Indian insurance broking industry after 100% FDI is allowed in the sector.


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