74% FDI allowed in insurance sector: amendment to Insurance Act – Newsletters

Andreas Milano

Introduction
Insurance (Amendment) Act
Comment

Introduction

For several years, stakeholders in the Indian insurance sector have wanted the foreign direct investment (FDI) limit for Indian insurers to be increased to 74% in parity with the FDI limit applicable to the private banking sector. On 1 February 2021, pursuant to the central budget speech for the financial year 2021-2022, the finance minister announced that the FDI cap for Indian insurers will be increased from 49% to 74%. In addition, it was announced that under the new framework:

  • foreign ownership and control would be allowed with safeguards;
  • the majority of directors
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Insurance industry can’t go it alone in the new normal

Andreas Milano

Partnerships between insurers and firms operating in the tech sector have made headlines more frequently over the past few months. Recent ones have included Aon collaborating with Nayms on a cryptocurrency pilot, Sompo International working with Flock on commercial drone solutions, and Blink partnering with Allianz Partners to roll out a travel disruption insurance platform, to name a few.

These types of collaborations are nothing new and have been around in the industry for many years now, as insurtechs have gained a foothold in insurance and have become seen as partners more than direct competitors to incumbents. However, experts predict

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Pramerica Life Insurance appoints Ms. Kalpana Sampat as the new MD & CEO

Ms. Kalpana Sampat, a seasoned business leader with over three and a half decades of profound experience, has been appointed as the Managing Director & CEO of Pramerica Life Insurance Limited, with effect from April 09, 2021. Prior to this appointment, she was the Chief Operating Officer for the Company.

Ms. Kalpana Sampat is one of the most influential leader in financial services sector in India, and her appointment at the top position, is an important milestone. Currently, she is one, of the only three women CEOs in life insurance sector in India, where the executive suite is still a

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Govt may hike pension sector FDI limit to 74%; Bill likely in next session

Andreas Milano


The government may hike foreign direct investment (FDI) limit in the pension sector to 74 per cent and a Bill in this regard is expected to come in the next Parliament session, according to sources.


Last month, Parliament approved a Bill to increase FDI limit in the insurance sector from 49 per cent to 74 per cent. The Insurance Act, 1938 was last amended in 2015 which raised FDI limit to 49 per cent, resulting in foreign capital inflow of Rs 26,000 crore in the last 5 years.



Amendment to Pension

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Avasant Names Capgemini a Leader in Insurance Digital Services

Andreas Milano

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PARIS–(BUSINESS WIRE)–
Capgemini announced that it has been named a Leader in Avasant’s Insurance Digital Services 2021-2022 RadarView1. In this assessment, Capgemini was rated highly for its practice maturity, investments and innovation, and partnership ecosystem. Capgemini also was recognized for its innovative industry-specific solutions powered by AI, cloud, analytics and automation.

The report attributes Capgemini’s growth in the insurance sector to its insight-driven approach combined with partnerships with specialized firms to create industry-specific solutions, and highlighted

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AM Best Maintains Negative Outlook on UK Non-Life Insurance Market

Andreas Milano

AM Best is maintaining a negative market segment outlook on the United Kingdom non-life insurance segment, citing economic uncertainty as a key headwind for UK non-life insurers.

In addition, COVID-19-related lockdown measures coincided with the country’s exit from the European Union, which together contributed to the biggest economic contraction since records began, said AM Best, noting that this is expected to maintain pressure on premium income.

The UK’s gross domestic product (GDP) contracted by 9.8% during 2020, noted the ratings agency, quoting the International Monetary Fund (IMF).

Demand for insurance, which is linked to GDP, is expected to come under

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