A host of companies and banks including Larsen & Toubro, real estate major DLF, Canara Bank and Bank of Baroda are queuing up to obtain licence from Insurance Regulatory and Development Authority of India (IRDA) for foraying into the insurance industry. With these new entrants, there is going to be stiff competition in the market while customers can wait to reap in the benefits.
Speaking to FE, CS Rao, chairman of IRDA, said ?We had six applications and of them IDBI Fortis and Universal Sompo were cleared. Four other applications including that of the Shriram group with Sanlam and Bank of Maharashtra for general insurance, Aegon Religare Life Insurance Company, Bharti AXA General Insurance and DLF Pramerica Life Insurance Company have been received and are being processed.
Apart from these players, L&T has also shown interest in entering the general insurance space and is looking for a foreign partner, while Canara Bank and HSBC Bank want to join hands for a life insurance foray and Bank of Baroda is coming into the insurance industry with a UK-based company Legal & General.
As of now, the country has 16 life insurance companies which are already licenced including LIC, 12 non-life companies, two health insurance companies and one for agri insurance.