Page 20 - Life Insurance Today March 2016

 Supported IRDA in framing regulations for micro- Country/region 2013 2014 2015E 2016F 2017F
insurance, allowing for the distribution and
administration of micro insurance products including US 3.2% 3.0% 3.8% 1.8% 1.3%
health insurance. This enabled NGOs, community-
based organizations, and MFIs to offer and administer Canada 2.7% 1.9% 2.7% 0.8% 2.3%
micro insurance schemes in rural areas particularly for
the poor and vulnerable, thus making insurance for Japan 7.7% 0.3% 2.5% 2.8% 1.0%
the economically vulnerable more accessible. Actively
participated in forums and round table discussions Australia 5.7% 1.3% -0.1% 0.7% 2.1%
about the challenges and opportunities created by the
insurance reform. UK -1.8% 1.9% 2.3% 1.3% 2.2%

The productive collaboration under the USAID-funded Germany 2.5% 2.9% 2.6% 1.7% 0.6%
project resulted in strengthened institutional capacity of
the IRDA, with a special emphasis on equipping it to deal France 0.1% 0.3% 0.7% 1.0% 1.4%
with changes in the insurance industry's competitive
profile, institutional framework and professional Italy -6.1% -3.0% -3.0% -1.8% 1.5%
landscape. The benefits of the project continue to be felt
in India today, with ongoing internships in the United Advanced 2.1% 2.0% 1.7%[2] 1.8% 1.7%
States to facilitate continued learning and information markets[1]
exchange for IRDA staff.
Emerging 8.0% 6.3% 5.6% 7.9% 8.7%
In addition, the project contributed to significant changes markets
in India's insurance industry. India is still lagging behind in
in penetration rate especially in non life sector. Swiss Re World 3.2% 2.8% 2.5%[2] 3.0% 3.2%
data shows the real growth (%) of direct premiums written
in major non-life insurance markets and regions: Long awaited insurance bill:

The long-pending Insurance Bill, a key economic reform in
legislation providing for raising foreign investment cap to
49 per cent, was passed which was pending since 2008.
The proposed legislation will allow PSU general insurers to
raise funds from the capital market and provides for
increased penalty to deter multilevel marketing of
insurance products. In the banking sector, the FDI cap was
74 per cent.

The controversial Insurance Laws (Amendment) Bill, which
seeks to replace an ordinance, provides for imprisonment
of up to 10 years for selling policies without registration
with the regulator IRDA. China and a number of other
countries allow higher foreign investment in insurance.
India is well within the global benchmarks. The
amendments are aimed at bringing about improvements
and revisions in the laws relating to insurance business in
India to remove archaic provisions and incorporate
modern day practices emerging in a changing dynamic
environment, which includes private participation. Under
the new provisions, the Life Insurance Council and the
General Insurance Council would act as self-regulating
bodies for the sector.

The FDI limit hike in insurance could result in immediate

"It is better to remain silent at the risk of being thought a fool, than to talk and remove all doubt of it."

20 March 2016 Life Insurance Today