Irdai looks to nudge more insurance players for listing

Mumbai: Insurance industry regulator Irdai chairman Debasish Panda on Tuesday asked more conglomerates to enter the insurance fray, pointing out that the Indian market offers handsome opportunities to grow.

He also said that the watchdog is ‘nudging’ more players to go for listing on the capital markets to create more transparency and information, which will ultimately benefit shareholders and the sector as a whole. Panda refrained from commenting directly on news reports of a cut in the Goods and Services Tax, calling the issue as the one outside his realm. However, he said that Irdai would want to ensure that covers become more affordable, which will help deepen the reach, but was quick to add that cutting taxes is not the only way to do so. Addressing industry members at an event organised by lobby grouping CII, Panda said given the population of over 1.4 billion, there are opportunities even if the total number of entities exceeds 70. The regulator, which is also tasked with the development of the market, has made it very simple for newer applicants to enter the fray, he said, adding that any type of shareholder or promoter is welcome to enter the space.

“I request through this forum that the other conglomerates and other big groups should enter into the insurance sector in India. It’s a very exciting time in the sector in India,” he said. The chairman also said that the processes of entering the fray are seamless now and claimed that the ground situation is such that the regulatory nods require less time, and it is the companies that are seeking more time. The regulatory body’s chief said more than consolidation, Irdai is working on growing the number of players in the industry and also held roadshows in Japan, Europe and the US recently where it told global investors about the opportunities awaiting them in the Indian insurance sector.

“We have removed all the entry barriers of floating an insurance company. Today, virtually every class of investor or funds can invest in the insurance business,” he said, adding that PE funds, institutional investors, venture capitalists and family offices can start an insurance venture. Getting more investments into the capital-intensive sector is also a priority for the regulator, he said. To a query on the listing or initial public offers from companies, Panda said more entities need to get listed and added that “we have been softly nudging them that after attaining a particular level and growth, they should

go for listing”.

The listing will mean more disclosures, transparency, and value for the policyholders and investors, he said, adding that a few IPOs are in the pipeline. Irdai has made the process very seamless for availing the no objection certificate needed in this journey and will be engaging with a few entities who it feels are ready to go for listing,

he noted.