Story thread · 3 reports / 3 sources

S&P bullish on India's insurance growth

economictimes.indiatimes.com · 5dShare

New Delhi, India's insurance sector is poised for 'massive' long-term growth, supported by structural reforms, low insurance penetration, and a favourable regulatory environment, but macroeconomic headwinds and profitability pressures remain key risks, S&P Global Ratings said on Thursday.In a report titled 'India Insurance Sector Trends', S&P said favourable regulatory reforms are attracting foreign capital and accelerating M&A activity in the sector."Accelerated industry reforms and low penetration levels to drive massive sector growth in India. Liberalization, competition and regulatory changes will shape the insurance sector's development," the report said.The government had earlier this year approved 100 per cent foreign direct investment (FDI) in the insurance sector under the automatic route.S&P said both life and non-life insurance sectors have growth potential, but profitability of non-life insurers could continue to be strained as pricing philosophies lean heavily on investmen

First report: ‘Weak insurance sector poses risks to banks, financial stability’ — punchng.com, 6d