There are atleast six insurance companies which have evinced their interest in order to raise their stake in the foreign direct investment. They are willing to increase the percentage from the present 26 percent upto 49 percent – this was informed by the Insurance Regulatory and Development Authority (IRDA).
Six insurance companies evince interest to raise FDI
The six to seven companies which are from both life insurance and non-life insurance sectors T S Vijayan told the reporters. This was informed in response to the questions that was asked during an event which was organized by ICICI Lombard General Insurance Company Ltd.
The company had conducted the event in order to announce they have issued more than 1 lakh policies for long term two wheeler insurance. The IRDA official did not want to name the companies and said that they are yet to file the formal application for the stake hike.
There are different stages of approval. The government has raised the cap on the FDI from March this year. Besides this Mr. Vijayan also mentioned that IRDAI will soon take a call about the problem of long term health insurance.
Mr. Vijayan stated, “They have more or less finalised the report. We are evaluating the report actually.”
“We have to take a look at it…what is the capital, solvency, claim settlement process..etc,” he added mentioning that often health insurance claims get settled by 3rd party administrators.
“There is a demand for long-standing (health insurance) plans, health savings plans in the market,” he said.