Moody's Investors Service says that the latest regulatory reforms in India have improved the ability of Indian primary insurers to take advantage of the country's strong economic growth, a credit positive for the sector.
"Regulations introduced since 2015 have facilitated the access of the insurers to capital and reinsurance cover, while encouraging them to improve the quality of their investment assets and reserve adequacy," says Mohammed Ali Londe, a Moody's Assistant Vice President and Analyst.
"These developments will gradually allow Indian insurers to reap greater benefits from India's strong economic expansion and to increase take-up of insurance
from current low levels," says Londe.
Moody's conclusions are contained in its report released today, "Insurance
-- India, Developing regulatory landscape and strong economy supportive for insurers". This report is now available on www.moodys.
com. Moody's subscribers can access this report via the link at the end of this press release. The research is an update to the markets and does not constitute a rating action. ICRA Limited, Moody's affiliate in India, also contributed to the report.