The Insurance Regulatory and Development Authority (IRDA) is contemplating a lead insurance model based on geography for the sector on the lines of the lead banking model followed by the banking industry.
Under the lead bank scheme, a bank is designated as lead bank for a specific geography, which coordinates various developmental schemes.
“IRDA has proposed the lead insurance model on the basis of geography, just like the banking industry,” said J Hari Narayan, chairman, IRDA.
The regulator is waiting for feedbacks from the life insurance and non-life insurance council on this issue.
Hari Narayan also hailed increase in foreign direct investment (FDI). “We will welcome the steps to increase the FDI in insurance sector,” he said. Insurance FDI is currently capped at 26%.
The IRDA chief will meet finance minister P Chidambaram on Wednesday to resolve various taxation issues. “We believe that certain tax measures will be helpful for the growth of the industry,” he said.