Limited appetite raises questions on insurance FDI growth projections

The pace of FDI utilisation has been slow. Among private-sector non-life insurers, no company has reached the current 74 per cent threshold

Amid reports that a Bill to raise the foreign investment cap in the insurance sector to 100 per cent could be introdued in Parliament either in this session or the next, government data reveals that companies have utilised only 32.67 per cent of the current 74 per cent foreign direct investment (FDI) limit, indicating limited demand for such capital. 

 

Data as of March 31, 2024, shows that of the total paid-up capital of Rs 96,016.54 crore in the sector, only Rs 31,365.57 crore was FDI. If the government-owned LIC and the four general insurers were excluded, the share would rise