Capital requirements and constraints in Indian life insurance sector in the current environment
ByRichard Holloway, and Sanket Kawatkar
29 March 2011
Capital requirements and constraints in Indian life insurance sector in the current environment
Capital injections into Indian life insurance companies have dropped off since the global financial crisis, and the industry now faces a major challenge in obtaining the capital it needs. In addition to other factors, it is likely that recent IRDA guidelines that cap charges on unit-linked products are slowing investment of capital into the business. This paper discusses the steps that policymakers and the IRDA should take to increase industry access to capital, in order to support growth in the future.