iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

M-;A deals along with new entrants may continue to boost insurance industry growth, ET report

19 Sep 2022 , 09:09 AM

The insurance industry, which is very capital intensive and can accept new entrants with specialized skill sets and long-term vision, will continue to be a part of mergers and acquisitions.

The sector’s recent advancements and the Mumbai National Company Law Tribunal’s (NCLT) decision to permit the merger of Exide Life Insurance and HDFC Life give rise to the possibility that firms lacking the necessary skills may leave the industry.

The Insurance Regulatory and Development Authority of India (IRDAI) has begun looking for consultants who can carry out the valuation of state-owned and private sector insurers and train its officials about valuation methodology and processes in order to equip themselves with the complexities of mergers and acquisitions.

Market participants and analysts believe that the market has tremendous room for growth and anticipate both new entrants and merger and acquisition (M&A) activities.

Anand Pejawar, Deputy Managing Director of SBI General Insurance, told ET, “Players with excellent underwriting standards, robust financials, and appropriate management methods will continue to develop in the long-term.”

With a gain of 11.70%, insurance penetration in India climbed from 3.76% to 4.20% between 2019 and 2020.

The government amended the Insurance Act last year, allowing an increase in foreign ownership of insurers from 49% to 74%.

In addition, the General Insurance Business (Nationalisation) Amendment Bill, 2021, passed by Parliament, opened the door for privatization by allowing the central government to reduce its ownership share in a certain insurer to less than 51%.

For feedback and suggestions, write to us at editorial@iifl.com

 

Related Tags

  • growth
  • Insurance
  • NCLT
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.