India considers major reforms to 1938 Insurance Act

The bill amendments could potentially let insurers enter the banking industry.

The Indian government has expressed interest in a bill seeking amendments to the Insurance Act of 1938, reported Business Standard.

Amongst the changes, which could be part of the bill, include composite licence, differential capital, reduction in solvency norms, issuing the captive licence, change in investment regulations, one-time registration for intermediaries and letting insurance disseminate other products, sources told Business Standard.

This could potentially let insurers enter the banking industry. Meanwhile, the provision of composite licences would enable life insurers to underwrite health coverage or general insurance policies.

Presently, the Insurance Regulatory and Development Authority does not permit composite licensing for insurance companies to sell both life and non-life products.