Irdai has granted two general insurance licences since 100% FDI: Chairman 

“After the sector was opened up for 100% FDI, we have already given two licences on the general insurance side. One was approved yesterday,” Seth said at an event in Mumbai on Tuesday, without naming the insurers.

Seth said foreign insurers are showing strong interest in the Indian market, particularly in the general insurance segment. “There’s a lot more interest coming on the general insurance side. The reason is obvious. In the last 10 years, the life insurance sector grew exactly as per the economy two-and-half times while the general insurance industry grew three-and-half times,” Seth said.

He, however, added that the life insurance industry also has the potential to grow at the same pace because there is a large unmet need. “There’s also a lot of interest coming in from some of the foreign promoters seeking to get into 100% ownership position,” Seth said, adding that very recently there has been an application on life insurance, which is a “very welcome development.” 

On the industry’s long-awaited digital marketplace, Seth said Bima Sugam is expected to become operational by the end of September, with initial products likely to be available by then. “Three products which are being prioritised motor, health and term insurance. It depends upon insurers doing their tech work so as to be able to connect,” Seth said. He added that if life insurers are ready to connect, term insurance products can be rolled out first.

Bima Sugam is an Amazon-like digital marketplace that will allow customers to compare, purchase and service insurance policies on a unified platform. Seth also said the much-awaited consultation paper on distribution reforms will be released before the end of July.

He added that the consultation paper would address issues around product bundling and sales practices, particularly products sold through the bancassurance channel.