WHAT COULD BE TABLED AS A PART OF INSURANCE AMENDMENT BILL IN WINTER SESSION OF PARLIAMENT 1) ALLOWING MERGERS BETWEEN INSURANCE & NON INSURANCE COMPANY WHAT IT MEANS? -Currently Section 35 of Insurance Act restricts mergers between an insurance co & a non insurer, only allows merger between two insurers -Amendment would allow mergers between insurance co & non insurance co POSITIVE FOR? -Max Financial Services WHY? -Move would allow merger of Axis Max Life into Max Financial, facilitating direct listing of Axis Max Life & remove holdco discount at Max Financial 2) ALLOWING OPEN ARCHITECTURE FOR INDIVIDUAL AGENTS WHAT IT MEANS? -Individual agents to be allowed to tie up with more than one life, one general & one health insurance company -Currently one individual agent can only tie up with one life, one general & one health insurer NEGATIVE FOR? -LIC -SBI Life Insurance  WHY? LIC got 92% & SBI Life got 28% of their New Biz Premium through individual agents. If agents are allowed to tie up with more than one life, general & health insurer then they might be poached by other insurers for higher commission and primary insurer might have to pay higher commission to retain them or lose business. Also, higher the business coming to an insurer from individual agents, higher would be the impact in case of open architecture being allowed 3) ALLOWING COMPOSITE INSURANCE LICENCE WHAT IT MEANS? -With a Composite Insurance License, insurance companies may be able to undertake Life, General & Health Insurance business under one entity -Currently an insurer need a separate licence to undertake life insurance & a separate license if it wants to undertake general or health insurance business 3) RAISING FDI LIMIT IN INSURANCE SECTOR TO 100% WHAT IT MEANS? Govt plans to increase FDI limit in insurance sector to 100% from current 74% 100% FDI is expected to give entire control to foreign investors on aspects like strategy, capital infusion, business POSITIVE FOR? Distributor like PB Fintech as number of insurers would increase NEUTRAL/NEGATIVE FOR? Existing insurers as competitive intensity would increase 4) EASIER ENTRY FOR NEW INSURERS WHAT IT ENTAILS? -Lower entry capital for new insurers -Lower requirements of net owned funds POSITIVE FOR? Distributor like PB Fintech as number of insurers would increase NEUTRAL/NEGATIVE FOR? Existing insurers as competitive intensity would increase 5) THRESHOLD FOR  IRDAI APPROVAL FOR TRANSFER OF SHARES TO BE INCREASED -IRDAI approval needed if transfer of shares is 5% of paid up capital -Currently IRDAI Approval is if transfer of shares is 1% of paid up capital POSITIVE FOR? All insurers as it simplifies approval process for transfer if shares 6) PENAL POWERS OF IRDAI MAY BE STRENGTHENED 7) RETIREMENT AGE FOR IRDAI MEMBERS TO BE INCREASED TO 65 YEARS FROM 62 YEARS @CNBCTV18Live @CNBCTV18News #InsuranceAmendmentBill #Parliament

#JustIn | Block deal in Max Financial Service; ▶️Max Ventures likely to sell up to 0.46% stake in co via Block Deals ▶️Offer size is ₹270 Cr, Floor Price at ₹1,675.5/Sh Sources to @VivekIyer72