SEPTEMBER, 20249IRDAI ADVOCATES INSURANCE COMPANIES TO DEMOCRATISE INSURANCESHRIRAM FINANCE TO RAISE USD 1.5B FROM INTERNATIONAL SOURCESThe Insurance Regulatory and Development Authority of India (Irdai) is urging insurance companies to develop strategies to achieve the "insurance for all" goal by 2047. This push is in response to the high premiums in health insurance, which often lead to affordability issues, especially for senior citizens who may opt out of coverage.During a recent "Insurance for All" vision meeting held in Mumbai, participants focused on defining the concept of universal insurance and establishing mechanisms for measuring and monitoring progress. One key proposal was to increase the diversity of insurance providers, which could foster greater competition and drive down prices. Another suggestion was to expand distribution channels to improve accessibility, particularly in underserved areas.The use of Insurtech was also discussed as a means to streamline operations, cut administrative costs, and improve efficiency. These cost savings could potentially be passed on to consumers through reduced premiums. Strengthening state insurance plans was identified as crucial to making insurance more affordable and achieving the broader goal of universal coverage. Indian non-banking lender Shriram Finance is planning to raise up to $1.5 billion from international markets during the current fiscal year as part of its strategy to diversify its borrowing sources. Y S Chakravarti, CEO and Managing Director of the company announced this target, indicating that the funds will be raised through a mix of loans and bonds.This move comes in response to a recent directive from India's central bank, which required lenders to allocate more capital against loans extended to non-banking financial companies (NBFCs) like Shriram Finance. This regulatory change has increased the cost of raising funds domestically, prompting the company to seek capital from overseas sources.Shriram Finance is the country's one of the biggest retail NBFCs offering credit solutions for commercial vehicles, two-wheeler loans, car loans, home loans, gold loans, and personal and small business loans. They are part of the 49-year-old Shriram Group, a financial conglomerate that has emerged as a trusted partner in creating transformative experiences and lasting impressions in customers' lives.In November 2022, Shriram Group's entities ­ Shriram Transport Finance Company Shriram City Union Finance and Shriram Capital Limited ­ merged to form Shriram Finance As of June 30, 2024, with a network of 3,095 branches and a workforce of 75,813, Shriram Finance has combined Assets Under Management (AUM) worth 233,443 crores. TOP STORIESSEPTEMBER, 20249
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