India plans to increase the insurance sector’s foreign direct investment (FDI) cap from 74% to 100%. This proposal is part of a broader set of reforms to attract global investors and modernise the insurance industry.

India plans to introduce amendments that could raise the insurance sector’s foreign direct investment (FDI) cap from 74% to 100%, aiming to attract global investors and modernise the industry.

The reforms may include allowing composite licenses for insurers, enabling companies to operate across life, general, and health insurance under a single license.

Insurance agents might also be allowed to sell policies from multiple insurers.

These changes are expected to be included in the Insurance Amendment Bill, which will likely be tabled in the ongoing winter session of Parliament.

The Insurance Regulatory and Development Authority of India (IRDAI) has already submitted its presentation to the government, supporting the 100% FDI proposal.

IRDAI Chairman Debasish Panda has highlighted the need for more foreign capital in the capital-intensive insurance sector, which is set for significant growth.

Panda emphasised that 100% FDI would bring global expertise, capacity, and technology to the sector, enabling foreign players to operate independently and infuse capital quickly without relying on an Indian partner.

The current FDI cap for insurance companies is 74%, increased from 49% in 2021.

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