Presenting India’s case in terms of ease of doing business, he said that after liberalisation, FDI in the insurance sector was increased from 26 per cent to 49 per cent in 2015 and 74 per cent in 2021.
“I would say it is a good move. On the one hand it is a calibrated move and on the other… 74 per cent is an outstanding number… From the perspective of international investors… Foreign investors should look at the Indian insurance industry as favorable Invest more in Roshni,” Kannan said.
While liberalizing the sector was a policy move of the government, regional regulator IRDA has also taken several measures over the years to make the industry attractive to foreign investors.
Though the protection requirement of policyholders has to be strictly regulated, he said, the Insurance Regulatory and Development Authority of India (Irdai) has put in a lot of efforts in the last few years.
He said that IRDA has relaxed the tight control of Indian owners.
“I think the regime has been completely diluted to ensure that there are very mild conditions today for foreign investment with Indians being the majority as key managerial persons… all other norms are tightened. Indian enterprises with respect to control, all that is gone,” he said.
Further, it has allowed insurance companies to ‘use and file’ from the earlier ‘file and use’ requirement, where insurers had to seek permission to launch any type of products before offering them to customers.
Instead, they can pilot a product now and launch it in a formal way later. Talking about Insurance Sugam Portal under auspices Of IRDA, Kannan said it would be an end-to-end commerce digital platform that would allow all services, including claims settlement, under one roof.
He also said that the Indian financial sector weathered the financial crisis better than others and the level of NPAs (non-performing assets) in the insurance sector was nonexistent.
“We have a competent regulator and we can deliver in a very meaningful way going forward,” he said.
Reiterating the agenda of growth and development of IRDA, he said that the President has talked about insurance for all by 2047 on the occasion of 100th Independence anniversary of India.
IRDA has a vision to provide both life and health insurance to all citizens of the country by 2047.