Life insurance companies have to deal with uncertain times: Rajesh Sud
Do you see a pick up in the business in next fiscal?
I feel, the first positive thing would come from regulatory issues getting settled and clarity emerging on that. The other thing we are hopeful is the Union Budget, where we have been arguing the life insurance industry has a very big role to play in mobilising small household savings and putting them to work for long-term investments for the economy. We hope this to get recognised by the finance minister, who will give specific exemption on the personal investment side. Life Insurance is covered under Sec 80(C), where there are so many competing instruments, including government funds and housing loan repayment, which most of us do. All that leaves almost nothing on the table for life insurance to be specifically exempted.
What would be your capital requirement in the coming year?
At present, we are adequately capitalised. We have R2,127 crore of the capital invested in the business, which runs up to a solvency margin of 551%. That
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