Category:

Policy

Govt unveils norms for 100% FDI in insurance intermediaries sector

However if a bank, whose primary business is outside the insurance area, is allowed by the IRDAI to function as an insurance intermediary, the foreign equity investment caps applicable in that sector, which is 74 percent, will continue to apply, subject to the condition that the revenues of such entities from the primary (non-insurance related) business must remain above 50 per cent. of their total revenues in any financial year.

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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.

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