Insurance Regulator Update

Govt May Expedite Stake Sale in Insurance PSUs to Meet SEBI Norms

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The finance ministry is planning to offload at least half of its required stake in New India Assurance Company and General Insurance Corporation of India (GIC Re) in FY26 to comply with the Securities and Exchange Board of India's (SEBI) minimum public shareholding (MPS) norms.

Currently, the government holds 85.44% in New India Assurance and 82.4% in GIC Re, significantly above SEBI's mandated 25% public float for listed companies. A senior government official confirmed that efforts will be focused on meeting MPS compliance during the current fiscal year.

The government may explore various market instruments to initiate the divestment process in tranches. These moves form part of broader disinvestment efforts and are expected to provide liquidity and improve transparency and governance in public sector insurance entities, while also attracting more institutional and retail participation.

Use Data-Driven Strategies to Attract Millennials: IRDAI Official

Highlighting the growing relevance of life insurance among India's working-age population, Swaminathan Iyer, IRDAI's Whole-Time Member (Life), urged insurers to shift from emotional appeals to data-driven strategies to engage millennials.

Speaking at a Life Insurance Council event, Iyer stated that although awareness is increasing, particularly among millennials, emotional marketing alone will not suffice. "You have to drive logic through data," he said, suggesting that facts, analytics, and value-based propositions are more effective in converting younger populations.