Insurance Industry Needs Capital Infusion Of INR 50,000 Crore, Says Debasish Panda The IRDAI chief said that the target is to double penetration in the next five years, and added that it is possible to insure all by 2047

The insurance sector watchdog Insurance Regulatory and Development Authority of India's (IRDAI) chief Debasish Panda, on Friday, has said that the insurance industry will need a capital infusion of INR 50,000 crore per year to double its penetration in the next five years, according to a PTI report.

While suggesting the business conglomerates to channelize the funds into the sector, Debasish Panda has also reportedly affirmed that the return on equity is at a healthy 14% for life insurers and 16% for non-life, as well as in the case of top five companies, it goes up to 20%.

Speaking at the annual insurance and pension summit organised by industry lobby CII, Panda said, "If we have to double the penetration, every year there is a need to infuse an additional INR 50,000 crore. The number has been arrived at after doing an analysis of current GDP growth, inflation and penetration."

"I'd like to reach out to the conglomerates who are present in this country, individual investors who are interested to invest their money," he further added.

According to the report, the IRDAI chief said that the target is to double penetration in the next five years, and added that it is possible to insure all by 2047, when the country will be celebrating its 100th anniversary of independence.

"India is at present the tenth biggest market in the world and will be the sixth biggest by 2032," Panda said.

While signifying the need to look beyond the present distribution arrangements, Panda reportedly asked the insurers to create grievance Redressal cells with a separate set of officials in place, along with emphasizing the need for financial sector participants to work together synergistically for deepening the penetration.