Increase FDI limit in insurance sector in Union Budget 2021, says Renewbuy CEO

Tax saving impetus towards insurance under section 80C & 80D would definitely help in increasing the insurance penetration, he writes

By Balachander Sekhar

2020 witnessed various announcements and regulatory changes in the insurance sector due to the on-going Covid pandemic. We believe that the need for Insurance coverage is critical in these times and should be a very important consideration in budget 2021. The government should definitely look at strengthening the sector by building insurance accessibility for consumers. Tax saving impetus towards insurance under section 80C & 80D would definitely help in increasing the insurance penetration in Tier 2 & 3 cities, where the insurance gap majorly lies and could give relief to consumers, especially in the wake of Covid-19.

Government could also look at raising the FDI limit in the sector, to boost further growth and development. Funds infused will not only help core insurance companies but also insurance aggregators, brokers, and InsurTech companies. Fresh funds in the sector are needed to enhance digitization and technology integration in the sector, which are the need of the hour. Digitization is the only way forward for solving the issue of insurance under-penetration in the country.

(The author is CEO & Co-Founder, Renewbuy.com)