Page 7 - Insurance Sector

100% FDI in insurance sector to woo more foreign players: Moody's

Increasing foreign investment limit in the insurance sector to 100 per cent from 74 per cent is likely to attract more global players in the growing Indian insurance market, Moody's Ratings said on Tuesday. Additionally, strong premium growth is expected to boost profitability of the sector. Currently, many foreign insurers are present in the country through joint ventures and could seek to increase their ownership stakes in their Indian affiliates following this change in regulation. "We view foreign investment as credit positive because it increases product innovation. The presence of foreign stakeholders also brings benefits in the areas of capital adequacy, financial flexibility and governance standards," Moody's Ratings said in a statement. Presenting Budget 2025-26, Finance Minister Nirmala Sitharaman proposed to raise the foreign investment limit to 100 per cent from 74 per cent in the insurance sector as part of new-generation financial sector reforms. Moreover, Moody's ..

100% FDI in Insurance: Foreign insurers may face distribution challenges

The opening up of the insurance industry to 100 per cent FDI comes at a time when the insurance regulator has been advocating "Insurance for All" by 2047

Insurance sector gets over 62% of $5.7 bn services sector FDI inflows in H1

The insurance sector was opened to foreign investors with an FDI limit of up to 26 per cent in 2000

Budget 2025: Insurers seek tax benefits, concessions for healthcare

Insurers are hopeful of a host of tax benefits, including concessions for the insurance and healthcare sectors, from the Union Budget 2025-26 to be unveiled by Finance Minister Nirmala Sitharaman on February 1. SBI General Insurance MD and CEO Naveen Chandra Jha said that as India advances toward financial inclusivity and universal healthcare, the upcoming Budget is expected to further strengthen the healthinsurance sector. Initiatives like Bima Sugam, designed to achieve the goal of 'Insurance for All' by 2047, are expected to receive regulatory and fiscal support to address the protection gap, he noted. "Additionally, the budget is likely to focus on expanding access in underserved regions through government-private partnerships, targeted subsidies, and advancements in digital infrastructure," Jha added. Bajaj Allianz Life MD and CEO Tarun Chugh said India's economic growth presents immense opportunities for the insurance sector to enhance financial resilience. "Aligning tax ...

ICICI Lombard General Insurance Q3 net profit rises 68% to Rs 724 crore

ICICI Lombard's premiums earned in its retail health insurance and corporate health insurance units grew nearly 25% and 12%, respectively

SBI Life Insurance Q3 results: Net profit jumps 71% to Rs 551 crore

SBI Life Insurance on Friday reported a 71 per cent rise in net profit at Rs 551 crore for the third quarter ended December. The life insurance company promoted by SBI had earned a profit of Rs 322 crore in the same quarter of the previous fiscal. The improvement in profit is aided by increase in new premium and renewal premium. During the quarter, net premium income improved to Rs 24,828 crore as against Rs 22,316 crore in the same quarter a year ago. However, total income halved to Rs 18,542 crore in the quarter under review from Rs 38,803 crore in October-December of FY24, SBI Life said in a regulatory filing. Decline in total income attributed to negative return earned from investment income of Rs 6,282 crore as compared to Rs 16,469 crore in the same quarter a year ago. Expense of management increased during the quarter to Rs 2,417 crore as compared to Rs 2,188 crore in the third quarter of the previous fiscal. The company's solvency ratio marginally declined to 204 per cen

Analysts bullish on HDFC Life post Q3 results; Nomura upgrades to 'Buy'

Nomura, which previously downgraded the stock to Neutral in Q2FY25 due to concerns about surrender value impact, slowing growth, and higher valuations, has now upgraded its rating to 'Buy'

India to top G20 with 7.3% insurance premium growth over 2025-29: Report

India's insurance market is projected to be the G20's fastest-growing economy over the next five years, with total premium volumes -- life and non-life -- up 7.3 per cent in real terms on average each year aided by macroeconomic stability and the conducive regulatory environment, a report said on Tuesday. Life insurance, the mainstay of India's insurance market, accounts for 74 per cent of total premium volumes, according to a Swiss Re report on the insurance market outlook for India. Life premiums are estimated to grow by 4.8 per cent in 2024 in real terms and by 5 per cent in 2025 (2025-29: 6.9 per cent), following a meagre 0.7 per cent growth in 2023, when the savings segment was adversely impacted by regulatory and taxation changes, it said. The non-life insurance business is forecast to expand to 7.3 per cent (up from 5.7 per cent in 2024) on the back of rising risk awareness, robust economic growth and regulatory initiatives in support of digitalisation, it said. Apart from .

Insurance industry seeks tax incentives, Insurance Act amendment in Budget

Considering the low penetration in the country, experts believe additional funding could provide vital support for the segment

How non-participating plans by insurers work as investment option

Lock-in returns for long-term with these plans from insurers

Business correspondents meet Irdai, seek consent to sell insurance products

BCRC's stance is that shocks from climate-related issues are affecting those at the bottom of the pyramid in a big way

Claims ratio of non-life insurers dips to 82.52% in FY24: Irdai report

Net incurred claims to net earned premium (claims ratio) of non-life insurance industry stood at 82.52 per cent during 2023-24 as against 82.95 per cent in the preceding fiscal year, as per the Irdai's annual report. According to the Annual Report 2023-24 of the Insurance Regulatory and Development Authority of India (Irdai), during 2023-24, the non-life insurance industry underwrote a total direct premium of Rs 2.90 lakh crore in India registering a growth of 12.76 per cent from previous year. The contribution of public sector general insurers increased 8.88 per cent from Rs 82,891 crore in 2022-23 to Rs 90,252 crore in 2023-24. Private sector insurers, including standalone health insurers, have underwritten Rs 1.88 lakh crore as against Rs 1.58 lakh crore in 2022-23. The aggregate profit of the non-life insurance sector was Rs 10,119 crore as against a net loss of Rs 2,566 crore in 2022-23. During 2023-24, the aggregate net incurred claims saw a 15.39 per cent increase to Rs 1.7

New India, GIC, other insurance cos fall up to 6% as GST decision deferred

In one month, the stock prices of ICICI Prudential, HDFC Life and SBI Life have fallen between 6 per cent and 10 per cent, as against the 2 per cent decline in BSE Sensex

Banca cap may impact banks' net profit by 1-2%, says IIFL Securities

It could shave off 15-30% of banks' fee income that they earn by selling insurance

Steep rise in premium, poor claim experience? Consider porting your policy

Check for loopholes in coverage, like sub-limits, and evaluate whether you need to augment coverage through a super top up policy

Irdai to introduce norms for more qualified insurance sales personnel

Tripathy said that despite the rapid growth in the insurance industry in recent years, there is a gap in education and upskilling of the industry's employees

Star Health & Allied Insurance eyes 18% GWP growth this financial year

Star Health reported an 11 per cent drop in profit after tax (PAT) to Rs 111 crore during the quarter ended September 30, down from Rs 125 crore in the corresponding quarter last year

Star Health drops 5% as Irdai issues show cause notice for violating norms

The fall in insurer's share price came after the company announced that the Insurance Regulatory and Development Authority of India (Irdai) has issued a show cause notice for violating norms

Lockton aims to double business outside US in 4 Years, says CEO Chris Brown

The insurance broker recently entered the Indian insurance market and acquired Arihant Insurance Brokers as a strategic initiative to gain entry into the broking market in the country

Insurance Amendment Bill proposing 100% FDI unlikely in winter session

Insurance Amendment Bill, which proposes 100 per cent FDI in the insurance sector, may not be introduced in Parliament in the ongoing session, sources said. Some finetuning may be required in the draft Bill after receiving comments from stakeholders, sources said. Given the paucity of time, it is difficult to present the Bill in the ongoing session, sources said, adding it may, however, come in the Budget session. The finance ministry has proposed to amend various provisions of the Insurance Act, of 1938, including raising foreign direct investment (FDI) in the insurance sector to 100 per cent, reduction in paid-up capital, and provision for composite licence. The Department of Financial Services (DFS) has sought public comments on the proposed amendments by December 10. As per the proposal, the FDI limit in Indian insurance companies will be raised from 74 per cent to 100 per cent. This is the second public consultation that the DFS has sought on the proposed amendments to the .