The size of funds managed by insurers in the country is expected to reach whopping level of Rs 30 lakh crores in next five years, a jump of 70% from current level, outgoing Insurance Regulatory and Development Authority (IRDA) chairman J. Hari Narayan said.
He said that when the insurance industry was opened up in 2000, the total controlled fund was about Rs 1 lakh crores. It was Rs 8 lakh crores in 2008 and it is Rs 18 lakh crores now.
He also said that he is in favour of government’s view of hiking Foreign Direct Investment (FDI) limit in insurance sector to 49% from current 26%. This would lead to a substantial flow of funds in capital intensive sector. It is estimated that insurance sector will require at least Rs 30,000 crores in next five years to double its size.
vinay mohanty
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