A Parliamentary panel has expressed concern about the financial health of General Public Sector Insurance Companies as despite measures such as focusing on pursuing profitable business including motor and health portfolio, improving risk management practices, monetising the commercial and residential assets not in use, modernising and upgrading IT systems, capital infusion etc., the desired results do not seem to be appearing.
It is concerned that with the tweaks in the slabs and rates in the New Tax Regime, there might be a decline in life insurance penetration in the country as a major chunk of the population invests in life insurance products as tax saving instruments, which is also the most important source of loanable/investment fund in the economy.
The Committee also urged that a comprehensive study be undertaken to evaluate the impact of opening up of the insurance sector, so that any changes, if needed, can be made to the act governing the Insurance sector.
