Open up insurance: CII

The chamber felt that private sector insurers should be allowed to enter the country insurance market to provide individual and corporate customers a competitive environment.

CII recommended that the Insurance Regulatory Authority should be granted a statutory and autonomous status to enable it to take tough decisions. The chamber felt that the critical issue is the establishment of a regulatory framework based on market principles and focused on the fundamental issues of customer protection and solvency.

CII stated that the opening up of the insurance sector would be the key to capital formation inthe country. According to the chamber, an open and competitive insurance market would provide the safety net investor capital seeks for the multitude of risks that are inherent in cross-border investment, particularly for infrastructural projects and manufacturing involving advanced technologies.

CII has also appealed to the government to establish the ground rules for opening up the market and entry which would allow new market participants to measure their initiatives to the needs of the market and to their own capabilities.