India Allows 100% Foreign Direct Investment in Insurance
The bill aims to attract global investors, improve insurer solvency, and boost insurance penetration targeting 'Insurance for All by 2047,' with Rs 82,000 crore FDI so far.
- On December 12, the Union Cabinet chaired by Prime Minister Narendra Modi approved the Insurance Laws Bill 2025 to raise FDI in insurance to 100%.
- The finance ministry proposed amendments to the Insurance Act, 1938, including capital and licensing changes, while planned regulatory changes extend to the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999.
- Officials said the changes aim to attract more global players and foreign capital, improve insurer solvency and balance sheets, and increase competition to drive product innovation and customer service.
- The bill is set for introduction in the ongoing Winter Session, which concludes on December 19, and a Lok Sabha bulletin lists it among 13 items scheduled for discussion.
- Despite the FDI decision, several broader reforms such as composite licences remain on hold, with the insurance sector having attracted Rs 82,000 crore in FDI, supporting the goal of 'Insurance for All by 2047'.
10 Articles
10 Articles
India allows 100% foreign direct investment in insurance
The Centre has cleared a key reform to raise FDI in insurance companies to 100 percent, while holding back other proposals from the broader Insurance Amendment Bill. The move, approved by the Union Cabinet on December 12, aims to attract more foreign capital and strengthen the sector as the bill heads to Parliament this session.
Cabinet Clears Bill To Raise FDI In Insurance To 100%
The Union cabinet today approved an amendment Bill to raise the foreign direct investment (FDI) limit in insurance companies to 100% from 74%. The move is part of a larger push to reform and modernise the sector. The Insurance Laws (Amendment) Bill, 2025 will be taken up in the ongoing Winter Session of Parliament, which ends on December 19, PTI reported. It is one of 13 Bills listed for discussion. The changes are meant to boost insurance pene…
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