IRDAI Chief Debashish Panda Reveals Pipeline of Almost 20 New Insurance Companies
IRDAI Chief Debashish Panda Reveals Pipeline of Almost 20 New Insurance Companies.
April 15, 2023: The Chairman of the Insurance Regulatory and Development Authority of India (IRDAI), Debashish Panda, recently announced that there are nearly 20 new insurance companies in the pipeline.
These companies have expressed their interest in the Indian insurance sector, and their applications are currently under review.
In a virtual conference, Panda highlighted that the Indian insurance industry has been growing steadily, with a compound annual growth rate (CAGR) of around 10% in the past five years.
He added that the country’s insurance penetration rate, which measures the percentage of the population with insurance coverage, stands at around 3.76%.
Panda stressed the importance of innovation and digitalisation in the insurance industry, citing the IRDAI’s recent initiatives such as the Regulatory Sandbox and the creation of a new innovation hub.
He noted that digitalisation can play a crucial role in making insurance more accessible and affordable to a wider audience.
The IRDAI chief also touched upon the challenges faced by the industry, including the impact of the COVID-19 pandemic on the economy and the rise in fraudulent activities.
He called for greater collaboration between the insurance companies, regulators, and law enforcement agencies to combat these challenges effectively.
Overall, Panda’s announcement of nearly 20 new insurance companies in the pipeline is a positive development for the Indian insurance sector, as it indicates growing interest and investment in the industry, which could lead to increased competition, innovation, and improved access to insurance products for consumers.
IRDAI Chairman Debashish Panda urged insurance companies to accelerate their work on Bima Sugam and state lead insurer mechanisms, while also disclosing that the regulatory body is reviewing nearly 20 applications for licenses from potential insurance companies.
In the past financial year, three new insurance companies – Acko Life Insurance, Credit Access, and Kshema General Insurance – were registered.
According to the IRDAI chief, the insurance industry has matured and has surpassed the Rs 10 lakh-crore premium and Rs 59 lakh-crore AUM (assets under management) milestones in the financial year 2022-2023, with both life and non-life sectors witnessing a growth of around 16 percent in premiums in February 2023.
The chairman highlighted that the last life insurer was registered in 2011, but now, in 2023, two more life insurance companies have been added, whereas the last general insurance company‘s licence was registered in 2017 and a new one has come up swiftly.
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