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Insurance firms can fuel the startup ecosystem

The insurance regulator's move to allow insurers to invest in fund of funds creates a significant source of domestic capital for Indian entrepreneurs

Insurance
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Gopal Jain
Insurance companies collect premiums from people seeking protection from a future event, and in turn, compensate customers who experience losses from this insurable event. This creates a cash-surplus for insurers, which they deploy to meet customer liabilities and generate shareholders returns. It effectively makes an insurance company both a risk mitigant for customers, and a source of long-term capital for enterprises.

Since they hold much of this capital in trust for their customers, it is imperative for them to balance their risk and rewards over the longer term. They make strategic calls on portfolio allocation, along with regular tactical calls, based
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