New Delhi: Private sector life insurer MetLife said on it is bullish on India as the industry contributed 4.1% to the economy in 2009, a handsome rise since the sector was thrown open to the private sector in 1999.
“There are several inflection points that the industry is awaiting. Prominent among them is the passage of the insurance laws (amendment) bill 2008...a hike in the sectoral FDI cap to 49% would further strengthen the insurance sector as it would help increase penetration of insurance, improve financial inclusion and fuel growth,” MetLife India Insurance managing director Rajesh Relan said.
The sector has contributed Rs6,000 crore in FDI, even as the bill to increase the cap from 26% to 49% is still pending in Parliament.
Relan said the industry is looking for early passage of the Insurance Amendment Bill to increase the FDI cap.
The government is likely to reintroduce the Insurance Bill on FDI cap in the next parliament session.
MetLife India Insurance Company incorporated in 2001 is a joint venture between MetLife Inc, Jammu and Kashmir Bank, M. Pallonji and Co. Pvt Ltd and other private investors.
According to Relan, the life insurance industry is on a threshold of a giant leap into the future.