Even as life as well as non-life insurance industry have registered positive growth in the last few years, a lot needs to be done, especially in the general insurance space, insurance regulator Irdai said on Tuesday. In order to further boost the insurance sector, the Insurance Regulatory and Development Authority of India (Irdai) is set to give new licences to various players in non-life, health and re-insurance. “Today compared to many other countries, our penetration as well as growth is good. But a lot needs to be covered, especially in the general insurance sphere. The penetration can be much higher than the current level,” Irdai chairman TS Vijayan said at the 19th Annual Global Conference of Actuaries on Tuesday. Vijayan also added that many people came under under Pradhan Mantri Fasal Bima Yojana (PMFBY) and Pradhan Mantri Jeevan Jyoti Yojana (PMJJY) and this itself shows that there is demand for insurance and right products like this should contribute to the growth of the sector.
This year, only life insurance has seen Rs 35 lakh crore asset and Rs 6 lakh crore premium has been collected. Considering there is less than 3% penetration in India and almost 7% globally, it indicates a huge potential for insurance in the coming years. According to the data from Irdai, first year premium of life insurance companies as on December stood at Rs 1.38 lakh crore, as compared to Rs 1.16 lakh crore upto December 2016. A senior official of the Life Insurance Corporation of India (LIC), who also attended the event, added that the country’s largest insurer has invested almost Rs 60,000 crore in the government’s disinvestment programme so far this fiscal. “We have invested almost Rs 3 lakh crore in equity and debt upto the end of third quarter, out of which Rs 2 lakh crore is in various government securities and Rs 40,000 crore in equity market,” said a senior person on condition of anonymity.
In the last financial year, LIC had invested over Rs 47,000 crore in equity markets. In the rising markets, LIC has almost booked profits of Rs 20,000 crore in equity markets till December end. In the last financial year, the insurer booked profits of Rs 19,000 crore in equity markets.
