Will India be a future insurance hub?

A parliamentary commission is examining a bill consisting in increasing foreign direct investment in insurance companies from 26% to 49%. If this proposal came to be validated and that India manages to upgrade its infrastructure and regulatory framework, the country would soon become an insurance and reinsurance hub.

India is currently one of the most buoyant insurance markets in the Asia-Pacific region, with non life penetration rate set at 0.8%.

According to recent studies, a 1% increase in the penetration rate would result in a 13% reduction in uninsured damage and 22% of the taxes levied on taxpayers for the financing of natural catastrophes. Moreover, it would result in an increase in the investment equivalent to 2% of GDP.

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