Finance Ministry has recently proposed new amendments in the insurance and Insurance Regulatory and Development Authority of India (IRDAI) Act and sought comments on this by December 15. CNBC-TV18 spoke to Nilesh Sathe, IRDAI member and Shailaja Lall, Head, Insurance Practice at Shardul Amarchand Mangaldas to discuss the proposals and impact.
As per Shah, composite licence is a good amendment for the insurance industry and green field companies could think of composite licence in a different manner.
Being from HDFC Life, he believes that HDFC Life and HDFC Ergo could have combination product between life and health.
"Have multiple thoughts on distribution of allied products and entering allied business. We would like to participate more in health and other allied services," he said.
Nilesh Sathe also believes that composite licence will have a big impact on insurance sector.
"There was some anomaly in the Insurance Act and now that has been rectified. Insurance company might have to take a separate composite licence. Insurance company might have to take a separate composite licence now," he said.
Shailaja Lall at Shardul Amarchand Mangaldas & Co believes that composite licence is bringing a lot of flexibility.
"Insurance can operate in two business classes or even sub-class. There are concerns about how solvency is going to be managed with composite licence. There are concerns about how solvency is going to be managed with composite licence," Lall said.
"Non-serious players entering insurance with minimum cap being reduced is a risk," she added.
On Bima Sugam, she said that could be disruptive for PB Fintech
First Published: Dec 2, 2022 5:27 PM IST
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