Private insurers not keen on higher FDI cap despite Sitharaman's offer

Private sector insurance companies are not keen on a higher foreign direct investment (FDI) cap even though Finance Minister Nirmala Sitharaman has offered them the option. They are comfortable as their balance sheets are not leveraged and premium growth is robust especially in the non-life business, with waning competition from the four state-owned insurance companies.

In Budget for 2019-20 the minister said, “The government will examine suggestions of further opening up of FDI in… insurance sectors in consultation with all stakeholders”.

The only change brought in was to allow 100 per cent FDI for insurance intermediaries. Bosses of some of the top