The insurance sector of India comprises of 57 insurance agencies of which 24 are in life insurance business and 33 are non-life guarantors. Among the existence of safety net providers, Life Insurance Corporation (LIC) is the sole open segment organization. Aside from that, among the non-life safety net providers there are six open area back up plans. Notwithstanding these, there is sole national re-guarantor, to be specific, General Insurance Corporation of India (GIC Re). Different partners in Indian Insurance advertise incorporate operators (individual and corporate), dealers, surveyors and outsider heads adjusting medical coverage claims.
The Government of India has taken various activities to help the Insurance sector. Some of them are as per the following:
- As per Union Budget 2019-20, 100 per cent foreign direct investment (FDI) permitted for insurance intermediaries.
- In September 2018, National Health Protection Scheme was launched under Ayushman Bharat to provide coverage of up to Rs 500,000 (US$ 7,723) to more than 100 million vulnerable families. The scheme is expected to increase penetration of health insurance in India from 34 per cent to 50 per cent.
- Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2017-18.
- The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue redesigned initial public offering (IPO) guidelines for insurance companies in India, which are to looking to divest equity through the IPO route.
- IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds that are issued by banks to augment their tier 1 capital, in order to expand the pool of eligible investors for the banks.