Recently, news came from IRDAI that they are planning a small insurance company in both the life and general insurance sector. Our insurance penetration in life and general insurance is significantly less, i.e. life insurance penetration is just 2.5 to 3 % and general insurance is just 1% of the total population. We know by 10 years back RBI had given some Universal and Small Finance Bank as per head bank account or banking facility to the ordinary citizen was less. Along with these payment bank licenses, which changed the banking penetration increased, and awareness of the financial products increased. As said above the insurance product penetration is not as expected. The small insurance company will have less compliance burden than the full-fledged insurance company. The solvency margin and capital requirement will be less. Just sometime back IRDAI gave authority to the insurance companies to launch products without its permission or allow them to sell, then take it...
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