Page 39 - Insurance Times December 2021

to prepare its quarterly balance sheet with profit or loss have not taken off yet. The government aims to mop up Rs
figures and make public key developments. The markets 1.75 lakh crore in the current fiscal from minority stake sale
regulator has also amended the rules to allow a company and privatisation. Of this, Rs 1 lakh crore was to come from
with a valuation of more than Rs.1 lakh crore to go for IPO selling its stake in public sector banks and financial
equivalent to 5% of the total value. institutions, and Rs 75,000 crore as CPSE disinvestment
receipts.
The insurance sector as a whole has been growing at a pace
significantly higher than that of the overall economy. After The IRDAI is allowing Indian insurance companies to invest
the initial public offering (IPO) of LIC, about 60 per cent of in fund of funds (FoFs), a move seen as giving a boost to the
the insurance business will be with listed companies. The private equity sector. The central government will maintain
fintech firm, of late, has been focused on increasing its reach a bare minimum presence in strategically important sectors.
in the market and working on top-line numbers. The Banks, financial institutions, and insurance are identified as
company recently launched a slew of products and services strategic sectors, which mean the government's minimum
aimed at helping seasoned, as well as new-to-investment presence will be there in insurance. The government would
users. It aims to achieve over 10 million users and 75 million look to amalgamate or disinvest in financial institutions, after
yearly transactions for Paytm Money, its stocks and mutual ensuring that it had a minimum presence. Over and above
a bare minimum presence, if there
is a need for me to identify those
(entities), which are there but are
probably not necessary for my
bare minimum presence,

I will think in terms of
amalgamating, or disinvesting in
them. The government, which has
already listed the state-run GIC Re
and The New India Assurance,
plans to float the shares of state-
owned life insurance giant LIC and
other government-owned general
insurers. The Indian insurance
fund investment platform, in the financial year 2021-2022, business sector has matured over the two decades since the
with the majority of users from small cities and towns. introduction of competition and regulations. The sector as
a whole has been growing at a pace significantly higher than
In the development of new solutions needed by this that of the overall economy.
emerging India and its maturing insurance sector, the
actuarial profession have a key role to play. Perceptions of References:
risk have heightened on account of the once-in-a-century
1. https://economictimes.indiatimes.com/markets/ipos/
.Other global risks are also looming, large climate change
fpos/three-insurance-related-
concerns and rising incidence of catastrophic events have
sharply raised awareness of environmental risks. Further, 2. https://indianexpress.com/article/explained/lics-ipo-
with the increased pace of technological change and and-its-customers-7417712/
innovation, new ways of carrying on businesses and engaging 3. https://www.moneycontrol.com/news/business/ipo/
in individual pursuits are constantly emerging. three-insurance-related-firms-to-
4. https://www.business-standard.com/article/companies/
According to IPO norms, an issuer company can offer the paytm-plans-to-launch-india
shares to employees at a discount of a maximum 10% on
5. https://economictimes.indiatimes.com/tech/startups/
the floor price at which the shares are offered to other
policybazaar-plans-ipo-
categories. The listing will be crucial for the government to
meet its disinvestment target, especially when its plans to 6. IRDAI Annual Report 2019-20
privatise two public sector banks and one insurance firm 7. Newspapers & Journals. T

The Insurance Times, December 2021 39