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Govt considering 100% FDI in insurance intermediaries to attract more funds

The FDI policy, at present, allows 49 per cent foreign investment in the insurance sector

Insurance Intermediaries Fdi  |  Economy  |  World Economy

Press Trust of India  |  New Delhi 

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The government is considering allowing 100 per cent (FDI) in intermediaries with a view to give a boost to the sector and attracting more funds, sources said.

Intermediary services include broking, third party administrators, surveyors and loss assessors.

The policy, at present, allows 49 per cent foreign in the sector, which includes insurance intermediaries.

Sources said that there is a need to de-link the cap in insurance intermediaries from insurance companies.

Representations have been made to the government that these intermediary services should be treated at par with other financial services intermediaries, where 100 per cent foreign is permitted.

Further, industry experts stated that the is being impacted due to weak distribution networks.

There is a need to strengthen the distribution network to support the sector as a whole.

in the country was over 3.4 per cent against the world average of 6.2 per cent.

First Published: Wed, May 09 2018. 20:58 IST