After facilitating 49 per cent FDI in the insurance sector via ordinance, the finance ministry is reviewing operations of all the public sector insurance firms to know their preparedness to face competition.
Union financial services secretary Hasmukh Adhia has called for a high-level meeting with all the public sector insurers in Hyderabad on Friday to review their past performances and future strategies. Insurance Regulatory and Development Authority (Irda) chairman TS Vijayan will also participate in the meeting.
SK Roy, chairman, Life Insurance Corporation, AK Roy, CMD, GIC Re, G Srinivasan, CMD, New India Assurance, Milind Kharat, CMD, United India along with other the top officials of state-owned companies will also be present.
Finance ministry sources explained that after banking industry, for which a Gyan Sangam was organised in Pune earlier this month, the ministry is now focusing on the insurance industry. The ministry has asked all these companies to provide their strategies for the next five years.
Though the Jan Dhan scheme is now restricted to banking, insurance sector is expected to play their part by FY16. Besides the insurance ordinance which is likely to be converted into an Act in the Budget session has allowed the government to disinvest in state-owned general insurance companies.