Hyderabad:
Foreign players can raise their stakes upto 74 per cent in the Indian insurance sector soon, said Subhash Khuntia, chairman, IRDAI.
“The relevant provisions of the Insurance Act, 1938 have already been amended. The draft amendment to the Rules has been notified inviting suggestions from the public. Once the final amended Rules are in place, which are likely soon, the relevant Regulations will be amended. The entire process is likely to be completed within a couple of months,'' he said in an interview with Asia Insurance Post.
However,the earlier change of rules to allow 100 per cent FDI in the Indian insurance intermediary sector including broking has not attracted any foreign players yet for setting up their operations.
“This was allowed as per budget announcement in 2019 and we have not received many proposals.'' said Khuntia.
Khuntia, who will completing his three year term today, said Indian insurance will shift to risk based capital(RBC) in next three years
“We are committed to usher in risk-based capital (RBC) framework, which is more objective and beneficial for insurers that manage risk well. It should be possible to change over in a period of 3 years. We also plan to synchronise with the new accounting standard Ind AS 117 based on IFRS-17,'' he explained.