FDI in insurance may shorten break-even period by 3 years: IIM Indore study

Currently, operating and commission expenses of private insurers are said to be thrice those of public counterparts. It is here that a hike in FDI limit will give the former a level-playing field

The hike in foreign direct investment (FDI) limit from 49 per cent to 74 per cent in the insurance sector is set to shorten the break-even period for the industry in India from current eight years to five, finds a working paper by the Indian Institute of Management (IIM) Indore.

The study says the move will provide the Indian insurance sector much needed impetus to develop physical & digital infrastructure, recruit and train skilled manpower, design innovative products, add new channels and develop new business models to reach the low-income segment of the population.

Titled 'FDI in Insurance: Meaning and Impact', the