Chennai, Jan 13: India’s insurance regulator has set up a committee to study the option of allowing 100 percent foreign direct investment (FDI) in insurance intermediaries, third-party administrators (TPA), surveyors and loss assessors.
Currently the FDI limit for these entities is 26 percent in line with the limit stipulated for insurance companies.
The Insurance Regulatory and Development Authority’s (IRDA) Jan 10 order has set up a 10-member committee to study whether there is a case for increasing the FDI limit in insurance entities (other than insurance companies) and if yes, to what extent.
The committee will also look at the implications of modifying the limit on the industry and the international practices.
According to IRDA, it has been receiving representations from various stakeholders to permit increasing FDI limit to 100 percent from 26 percent as this measure needs amendment to its own regulations and not any law.
Interestingly, the panel has no representatives from any of the primary public sector insurance companies (life and non-life) while two members are from a private life and non-life insurance company.