India is looking to modify rules to expand the penetration of the insurance industry as new companies, including foreign entities, are trying to foray into the market, reported Bloomberg.

Indian insurance companies are currently estimated to have a total of Rs60tn ($731bn) assets under management, which is higher than the economy of various nations such as Poland and Sweden.

In the year ending this March, India’s insurance industry saw a 13.7% growth.

In an email sent to Bloomberg, India’s Insurance Regulatory and Development Authority chairman Debasish Panda said: “Proposals for amendments to insurance laws include rationalised capital requirements, composite registration, one-time registration for intermediaries, value-added services by insurers, and sale of other financial products.”

Despite having significant growth, the penetration of the insurance sector in the country is below 5% among its 1.4 billion population, thereby indicating an opportunity for investors.

India currently permits foreign investors to own a stake of up to 74% in insurers.

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By GlobalData

A number of international entities, including American International Group and Prudential Financial have already entered the country by forging alliances with local firms.

Last year, four new companies launched their operations in India’s insurance industry, Panda told the agency. Various other firms are also in different stages of enrolment, demonstrating the positive environment for business in the country.

Panda added: “The expanding middle class, young population, growing disposable incomes, and widespread usage of technology provide several prospects.”

He further said that the industry needs additional technical capabilities, expertise, technology and capital.