Insurance industry to consolidate: Deepak Parekh

MUMBAI: HDFC chairman Deepak Parekh has said that the life insurance industry was likely to see consolidation following de-growth resulting out of regulatory changes. According to Parekh, companies that are looking at the capital market for funds are holding back on IPOs because of a delay in increasing the foreign direct investment limit.
Parekh said, "Much greater effort, especially in terms of a more conducive regulatory environment, will be needed to increase penetration of insurance.Currently, less than 10% of India's population has a life insurance cover and 0.6% non-life insurance."