Insurance sector may get over Rs 12,000 crore FDI in 2016: Assocham

New Delhi: Insurance sector is likely to attract FDI of over Rs 12,000 crore in 2016 as more than a dozen foreign companies plan to raise their stake in private sector insurance joint venture this year, industry body Assocham on January 25 said.

"More than Rs 12,000 crore is set to flow in the insurance sector comprising both life and non-life during 2016. Besides, re-insurance sector would also see some fund flow as it too has got a leg-up through the amended Act," Assocham Secretary General D S Rawat said in a statement.

The investment push has come as a result of liberalisation of foreign investment ceiling from 26 per cent to 49 per cent last year through the passage of Insurance Laws (Amendment) Bill. The Bill was passed by Parliament in March clearing decks for foreign entities to increase their stake in private sector insurance companies.

Companies including AXA of France, Bupa of the UK, Nippon Life Insurance of Japan had recently announced raising stake in their respective joint ventures. More than a dozen foreign companies including BNP Paribas Cardif, Insurance Australia Group, Aviva Plc, Standard Life Plc, AIA, QBE Insurance Group and Fairfax Financial Holdings of Canada are expected to raise stakes in their ventures during this year, the industry body said.