{"id":94033,"date":"2021-03-11T16:07:38","date_gmt":"2021-03-11T10:37:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=94033"},"modified":"2021-03-12T11:06:30","modified_gmt":"2021-03-12T05:36:30","slug":"cabinet-clears-74-fdi-in-insurance-sector","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/cabinet-clears-74-fdi-in-insurance-sector\/","title":{"rendered":"Cabinet clears &#8220;74% FDI in Insurance Sector&#8221;"},"content":{"rendered":"<p><strong>What is the news?<\/strong><\/p>\n<p>The Union Cabinet has approved a proposal to amend the Insurance Act, 1938. It will increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49%.<\/p>\n<p><strong>Conditions: <\/strong>The increase in the foreign direct investment(FDI) limit in the insurance sector comes with safeguards such as:<\/p>\n<ul>\n<li>The majority of directors on the Board and key management persons in health and general insurance companies would be resident Indians. At least 50% of directors will be independent directors.<\/li>\n<li>The government will also specify a particular percentage of profits to be retained as a general reserve.<\/li>\n<\/ul>\n<p><strong>Significance of this move: <\/strong>Raising the foreign investment limit(FDI) in the insurance sector may provide the following benefits:<\/p>\n<ul>\n<li><strong>Improve capital availability<\/strong> in the insurance sector.<\/li>\n<li><strong>Help in developing the insurance industry <\/strong>as a channel for generating durable funds for the creation of long-term assets.<\/li>\n<li><strong>An increase in competition in the sector<\/strong> will help in lowering the cost of insurance products.<\/li>\n<li><strong>It would benefit small insurance players <\/strong>or the ones where the sponsors don\u2019t have the ability to infuse more capital.<\/li>\n<li><strong>Improve Insurance Penetration<\/strong> in the country.<\/li>\n<\/ul>\n<p><strong>About Insurance Penetration:<\/strong><\/p>\n<ul>\n<li>Insurance penetration is an indicator of insurance sector development within a country. It is the ratio of total insurance premiums to the GDP in a given year.<\/li>\n<li>Currently, Insurance penetration stands at just 3.71% of the GDP in the country.<\/li>\n<\/ul>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/cabinet-paves-way-for-raising-fdi-limit-in-insurance-sector-to-74-per-cent-7222978\/\"><strong>Indian Express<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the news? The Union Cabinet has approved a proposal to amend the Insurance Act, 1938. It will increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49%. Conditions: The increase in the foreign direct investment(FDI) limit in the insurance sector comes with safeguards such as: The majority of&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/cabinet-clears-74-fdi-in-insurance-sector\/\">Continue reading <span class=\"screen-reader-text\">Cabinet clears &#8220;74% FDI in Insurance Sector&#8221;<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[1460,1354],"class_list":["post-94033","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-eco_11","tag-eco_3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700459621},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/94033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=94033"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/94033\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=94033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=94033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=94033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}