Insurance sector needs Rs 50,000 cr capital each year to double penetration

Irdai Chairman Debabsish Panda said the Rs 50,000 crore figure was arrived at by making assumptions on the country's GDP, inflation, and how the world GDP will grow during this period

In order to double insurance penetration in the country, there is a need to infuse an additional Rs 50,000 crore in the sector every year by existing players by way of ploughing back their profits as well as through new investment, Debasish Panda, Chairman, Insurance Regulatory and Development Authority (Irdai) on Friday.

“After March, I intend to meet the chairpersons of all the insurance companies to drive home the point that they have to factor this and start planning to infuse more capital. I am glad some players have already started around that”, Panda said at a CII insurance event.