Eco Survey: FDI, IPOs, simplified rules may accelerate M&As in insurance

Additional foreign direct investment inflows, initial public offerings, simplified rules, and improved corporate valuations will likely accelerate mergers and acquisitions (M&As) in the insurance sector, the Economic Survey of 2022-23 noted. 

The Survey points out that the highly competitive sector is already witnessing M&As as insurers have huge opportunities and volume to co-exist in the space. 

A rapidly maturing insurance market has provided a lucrative opportunity to the govern­ment to privatise its stake in the insurance business. Accordingly, the General Insurance Business (Nationalisation) Amendment Act, 2021, allows the Centre to pare its stake to less than 51 per cent of