3 days Ago
Shares of insurance sector stocks like HDFC Life Insurance Company and ICICI Prudential fell up to 3.5% on the BSE after a ToI report suggested that the Indian government may allow 100% foreign direct investment (FDI) in insurance businesses. The shares of ICICI Prudential fell by 3.
5% to their day’s low of Rs 668.85 while HDFC Life and ICICI Lombard fell by nearly 3% each to Rs 669.80 and Rs 1,790 respectively.
Meanwhile, the shares of Star Health and Allied Insurance tumbled 2.3% to their 52-week low of Rs 452.45.
This likely landmark move will open the doors for global players to independently enter the market while also granting individual insurance agents the ability to sell policies from multiple companies, a significant departure from the current single-association cap. As reported by ET earlier, these measures are part of the Insurance Amendment Bill, which is set to be tabled during the upcoming winter session of Parliament. The move aligns with the government’s broader goal of achieving "Insurance for All by 2047," a vision recently emphasized by Insurance Regulatory and Development Authority of India (Irdai) chairman Debasish Panda.
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Check GMP and other details By raising the FDI cap to 100%, the government aims to attract new players with the financial muscle required to underwrite policies in a capital-intensive industry. Notably, some foreign players such as Allianz, which is reportedly planning to part ways with its Indian partner Bajaj Finserv , may now consider entering the Indian market independently. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel ).
