After the preliminary public providing (IPO) of LIC, about 60 per cent of the insurance coverage enterprise will probably be with listed corporations, Additional Secretary within the Finance Ministry Amit Agrawal mentioned on Saturday.
The Cabinet Committee on Economic Affairs (CCEA) had in July given its in-principle approval for the itemizing of insurance coverage behemoth Life Insurance Corporation of India (LIC). The IPO of the state-owned life insurer is a part of the federal government’s efforts to lift Rs 1.75 lakh crore by means of disinvestment within the present monetary 12 months.
Speaking at an occasion to mark Actuaries Day, Agrawal mentioned amid world challenges, India has continued to develop as an rising financial system with a monetary system that has matured, deepened and achieved scale.
The wants of this rising India are in some ways completely different, he mentioned, including the insurance coverage sector, over the 20 years for the reason that introduction of competitors and regulation, has matured with 69 insurers right now as in opposition to solely eight in 2000.
“A majority of these have crossed their initial breakeven phase. Once the proposed listing of LIC happens, about 60 per cent of the insurance industry business would be with listed entities. The sector as a whole has been growing at a pace significantly higher than that of the overall economy,” he mentioned.
Currently, there are 4 listed life insurers, and two within the non-life phase. State-owned re-insurer General Insurance Corporation of India can also be listed on bourses. Agrawal additional mentioned within the improvement of latest options wanted by this rising India and its maturing insurance coverage sector, the actuarial career have a key position to play.
