100% FDI in Insurance Can Unlock 1,000 Companies and 2.5 Crore Jobs: Dr. Tapan Singhel
Pune, 16th September 2025: Dr. Tapan Singhel, Managing Director and CEO of Bajaj Allianz General Insurance, has outlined an ambitious vision for India’s insurance sector, calling the government’s move to permit 100% Foreign Direct Investment (FDI) a “game changer.”
Speaking to ET Now, Dr. Singhel said he believes the sector could expand to 1,000 insurers and generate nearly 2.5 crore jobs if reforms are implemented effectively.
“The decision to allow full FDI is critical for the industry’s growth. It will spur innovation, boost insurance penetration, and create millions of jobs. The government has also shown great responsiveness to industry needs by easing the residency rule for directors and key managerial roles,” he said.
Rising Medical Costs a Key Concern
Dr. Singhel also addressed challenges facing health insurance, particularly the sharp rise in medical inflation, currently around 15%. “If healthcare costs keep rising unchecked, insurance will become unaffordable, defeating its very purpose,” he cautioned.
To ensure affordability, he suggested:
Expanding mass coverage and negotiating rates with hospitals, similar to government health schemes.
Making it mandatory for all employers to provide health insurance, with tax exemptions for both companies and employees.
Allowing businesses to allocate Corporate Social Responsibility (CSR) funds towards paying insurance premiums.
On Regulation and Consumer Benefit
Commenting on the Insurance Regulatory and Development Authority of India’s (IRDAI) framework that caps management expenses, Dr. Singhel said, “Setting a single limit ensures transparency, controls distribution costs, and leads to fairer pricing for consumers.”
Bajaj Allianz Transition to Full Indian Ownership
In a significant corporate development, Dr. Singhel confirmed that Bajaj will acquire Allianz’s stake in their joint venture, making Bajaj Allianz General Insurance a fully Indian-owned company. “This transition gives us greater flexibility and control over our future strategies,” he added.
The full interview can be watched here: ET Now Interview – Dr. Tapan Singhel.
