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Need Rs 50,000 crore capital infusion every year to double insurance penetration in five years: IRDAI chief

The Insurance Regulatory and Development Authority of India chief urges more conglomerates to enter the insurance space, and companies to bolster their grievance redressal mechanisms

January 20, 2023 / 04:15 PM IST

The Indian insurance sector needs an annual capital infusion of around Rs 50,000 crore to double insurance penetration in the country in five years, Debashish Panda, Chairman of the Insurance Regulatory and Development Authority of India (IRDAI) said on Friday.

He urged conglomerates to infuse funds into the sector as it is capable of generating attractive returns on equity.

“We need more conglomerates to enter the insurance sector,” he said in his address at an industry event organised by the Confederation of Indian Industries (CII) in Mumbai.

In 2021-22, India’s insurance penetration - premiums as a percentage of gross domestic product (GDP) - was 4.2 percent.