Various industries grow due to Indian Premier League (IPL). This year, insurance industry has benefited a lot from it. The BCCI has purchased an insurance coverage of around rupees 1,200 crore, which will make up for the loss of revenues from sale of broadcast and other rights if any of the IPL matches fail to take off. Also, Multi Screen Media (MSM), the official broadcaster of this tournament, has bought an insurance coverage of around rupees 800 crore to cover for the loss of revenue from advertisement if a game is called off after 10 or 20 overs, or the number of overs is reduced.

These deals have come in time when 49% FDI has also been allowed for insurance industry after a long wait of 6 years. Both the events indicate a growth year for insurance industry.

Read more at:

http://www.business-standard.com/article/finance/insurance-industry-rides-the-ipl-wave-115040700436_1.html

On Wednesday, April 8, 2015, the Reserve Bank of India issued a notification of Government’s decision to raise the bar of FDI limit in insurance sector to 49%. This move has been welcomed by the insurance industry of India as it will entice global insurance companies to set up units in India and the existing firms to increase their investment. The ability to absorb more foreign capital will also spur some insurance companies to list on the local stock exchanges via initial public offerings. As per the DIPP (Department of Industrial Policy and Promotion) guidelines, FDI of up to 26 per cent come under automatic route and beyond 26 per cent and up to 49 per cent government approval is needed. 

To know more, read the following Economic Times article:

http://economictimes.indiatimes.com/news/economy/policy/rbi-notifies-hike-in-fdi-cap-in-insurance-sector-to-49/articleshow/46852551.cms