100% FDI in Insurance: India Plans Major Shake-Up in Insurance Sector

The Indian government is gearing up to permit 100% FDI in the insurance sector, aiming to attract global players and boost insurance coverage. The move is a part of the Insurance Amendment Bill, this will also enable agents to sell policies from multiple companies, enhancing efficiency and consumer choice.

This is likely to be a landmark move that will open doors for global players to independently enter the market while allowing independent agents to sell policies from multiple companies. These measures and changes are a part of the Insurance Amendment Bill, which is set to be discussed during the upcoming winter session of parliament. This move is in alliance with the government’s broader goal of achieving “Insurance For All by 2047.” This vision was recently channelised by Insurance Regulatory and Development Authority of India (IRDAI) chairman Debasish Panda.

The current FDI ceiling for insurance companies is 74% with a 100% capping the government aims to attract new players.

Source: The Economic Times