Insurance companies in India: towards more flexible minimum capital requirements

minimum capitalThe regulatory authority (IRDAI) has suggested that the Indian government introduce reforms in the regulatory framework of the insurance sector.

The proposed amendments include easing the minimum capital requirements for small local insurers. The current minimum share capital authorized by the supervisory authority (IRDAI) is 1 billion INR (12.32 million USD) for life and non-life insurance companies and 2 billion INR (24.64 million USD) for reinsurers.

Other draft changes concern the revision of the insurers' investment provisions, the composition of the General Insurance Council and the Life Insurers' Council as well as the powers of IRDAI. The amendment of the regulations would, among other things, improve the policyholders' financial security and allow more players to access the Indian insurance market.

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