Debasish Panda, Chairperson at Insurance Regulatory Development Authority of India (IRDA) on Friday said that insurers are contributing significantly to the economy and so we need to focus on doubling insurance penetration. Insurance industry needs to infuse Rs 50,000 crore every 2 years, Panda said in an interaction with CNBC-TV18. He added that he will meet heads of all insurance companies post-March for fund infusion.
Panda further said that India has shown great resilience against global headwinds and going by projections, the country will become 3rd largest economy by 2030.
"India has a stable macro economy. Seeing rapid growth in urban centres, rural economy is catching up. Strong consumption story can be seen in India," Panda told CNBC-TV18.
During 2022, there was a number of announcements by the regulator aimed at further driving insurance penetration, enhancing customer centricity and leveraging the growing digitalisation of the industry. However, industry experts also believe that more is to be done.
On Budget 2023 expectations, Panda added that he is hoping insurance amendments will get approved in budget session of parliament.
"This could prove to be shot in the arm for insurance companies," he said.
As per Panda, enthusiasm can be seen from foreign investors in Indian insurance space and hopefully insurers should partner will all kinds of banks for distribution.
Meanwhile, Union Finance Minister Nirmala Sitharaman will deliver the Budget for the current year on February 1, 2023. With this Budget, expectations are high that there will be announcements in favour of the insurance sector and policyholders. These may include higher deductions for health insurance premiums, separate tax deduction provision for life insurance along with change in Unit Linked Insurance Plan (ULIP) taxation.
(Edited by : Anshul)
First Published: Jan 20, 2023 2:02 PM IST
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