Insurers hope for steps to raise access, aid innovation

Bill to amend insurance laws awaited, may introduce a slew of reforms for the sector

- Anshika Kayastha

Insurance companies are looking at government support for the sector through budget announcements that enhance accessibility, simplify tax benefits, and encourage innovation in insurance products. These include regulatory and fiscal support to initiatives such as Bima Sugam, which aims to address the protection gap and achieve the "Insurance for All" goal by 2047.

India is estimated to be Asia's fourth-largest general insurance market and 14th-largest globally. According to data from the Insurance Regulatory and Development Authority of India, health insurance has led this growth, which has grown around 25% annually over the past three years.

The biggest expectation from the budget is that the government will table the Insurance Laws (Amendment) Bill 2024, which is expected to introduce a slew of reforms for the insurance sector and simplify regulatory, corporate, and capital requirements for insurers.

"The government might table the Insurance Laws (Amendment) Bill 2024 in the Budget session, therein proposing a score of changes to capital requirements, permissible FDI limit, opening up of the agency channel, minimum capital requirements and more," said Subhrajit Mukhopadhyay, executive director, Edelweiss Life Insurance, adding that these changes will significantly accelerate the growth of the industry and support financial inclusion.