The committee set up by india’s regulator IRDAI to suggest measure to promote the growth and development of micro insurance has recommended lowering of the capital requirement for stand alone micro insurance companies to INR200million which is about ($2.7m) from the current level of |NR| billion so as to accelerate growth in this segment of the insurance market in the country. The panel posit that this is necessary to attract multiple players if the country wants to substantially increase insurance penetration.
This according to the committee is all the more urgent in the face of the current context of the covid-19 pandemic that has led millions of indians especially those in the informal sector without their livelihoods.
The committee also recommended that micro insurance companies as well as cooperatives and mutuals should be allowed to act as composite insurers to transact both life and non-life business through a single entity.

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