Outlook Money | 21st January 2025
Everyone, from insurers to policyholders, will be watching closely as Finance Minister Sitharaman takes the podium on February 1. Will the budget deliver the much-needed relief and reforms the sector is hoping for?
The insurance industry has listed out its demand from the government ahead of the announcement of the Union Budget 2025-26. The demands are more or less the same as the previous budget. They have pinned high hopes for change amid talks of the Insurance Amendment Bill seeing the light of day during the upcoming budget session.
Reforming the Sector for the Future
Regulatory changes are also on the wishlist. Says Ravi Bhadani, Partner at SNG & Partner Advocates & Solicitors, “Policy measures like increasing the FDI limit to 100 per cent, reducing the NOF (Net Owned Fund) requirement to Rs 50 crore, introducing composite licenses for insurers, and enabling an open architecture for individual agents can foster greater competition, innovation, and efficiency in the sector.”
These changes could make the industry more efficient and consumer-friendly.