The insurance industry in India is likely to attract FDI of over Rs 12,000 crore in 2016 as more than a dozen overseas companies plan to increase their stakes in private sector insurance joint venture this year, industry body Assocham, said.
“More than Rs 12,000 crore is set to flow into the insurance sector comprising both life and non-life during 2016. Besides, re-insurance sector would also see some fund flow as it too has got a leg-up through the amended Act,” Assocham Secretary General D S Rawat said in a statement.
The investment push has come as a result of liberalisation of overseas investment maximum from 26% to 49% last year through the passage of Insurance Laws (Amendment) Bill.
In March, the Bill was passed by Parliament clearing decks for overseas entities to raise their stake in insurance companies in the private sector.
Companies such as AXA of France, Bupa of the UK, Nippon Life Insurance of Japan had recently announced increased stake in their respective joint ventures.
More than a dozen foreign companies including BNP Paribas Cardif, Insurance Australia Group, Aviva Plc, Standard Life Plc, AIA, QBE Insurance Group and Fairfax Financial Holdings of Canada will probably increase stakes in their ventures during this year, the industry body said.