Kolkata: Mitigation of risks is key to drive penetration of insurance products in the country with the sector having potential to become a catalyst for economic growth, an official of the Union Finance Ministry said on Wednesday.
Speaking at a webinar on insurance organised by the Confederation of Indian Industry, Department of Financial Services Joint Secretary Saurabh Mishra said there was a 12 per cent growth in insurance penetration last year.
Both the government and the Insurance Regulatory and Development Authority of India are working together on how to drive the penetration of products, innovation and distribution, he said.
The government, in 2021, had increased the foreign direct investment limit for the sector from 49 per cent to 74 per cent with an aim at increasing coverage, the official said.
This would bring in more capital and help insurers design innovative solutions for people, Mishra said, adding that the sector can become a catalyst for economic growth.
He cautioned against risks, both cyber and those arising out of business interruptions.
