Bank is considering raising its holding in the life insurer to 30%, after RBI rule changes opened the door for larger bank investments in insurance companies.
The broker expects the structure to appeal to smaller firms exploring captives, larger corporates pursuing phased ownership strategies and ILS sponsors.
Industry participants say the proposed framework, set to launch by 2028, could reduce costs, improve operational efficiency and support broader adoption of captives and insurance-linked securities.
Insurers face broader expectations on stress testing, collateral quality, recapture planning and reinsurer due diligence under the revised guidelines, which apply from July 1.
Strong demand for wealth, retirement and legacy products, paired with changing capital regimes are pushing Asian life insurers toward equities and alternative assets as industry investments surge.
