'FDI hike will increase life insurance industry by 2.5 times'

BANGALORE: The raising of FDI limit in insurance from 26 per cent to 49 per cent might increase the total FDI in the life insurance industry by almost 2.5 times from the current levels of around Rs 2,500 crore, according to MD & CEO-designate of Aviva India, T R Ramachandran.

The proposed increase in FDI would add to the foreign inflow into the Indian economy, giving it a boost and enable the insurance industry grow and reach out to the length and breadth of the country, he said in a statement.

"Increasing FDI would also help the insurance sector to futher expand, launch innovative distribution channels, upgrade technology, enhance the current product portfolio and bring global best practices", Ramachandran said.