Insurance sector regulator IRDAI was in the process of tweaking the capital requirements norms for insurance companies, an official said Thursday.
"In India the capital requirement at present is Rs 100 crore, which is quite high as compared to advanced nations", Nilesh Sathe, Member (Life), Insurance Regulatory Development Authority of India (IRDAI) said.
By 2021 or 2022, this amount would be changed so that many aspirants could join the insurance sector, he told reporters on the sidelines of MCCI seminar here on Thursday.
These firms also did not need to offer a plethora of products but could stick to select ones, he viewed.
Sathe also said he was in line with the banking sector requirements to bring down promoters' capital leading to listing of the insurance firms.
According to him, term policies in India were driven by the private sector unlike the LIC, adding India still provided big scope for insurance penetration and increase in density of insured persons.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app