100% FDI Cap: A New Dawn for India's Insurance Sector

The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, allows 100% foreign direct investment in the insurance sector, aiming to expand coverage, create jobs, and enhance affordability. Experts believe this reform will foster competition, attract global investors, and secure growth in India's insurance industry.

The Indian government has passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, allowing up to 100% foreign direct investment (FDI) in the nation's insurance sector. This landmark decision aims to expand coverage, making insurance both more accessible and affordable, according to industry experts.

The legislation modifies several key acts, including the Insurance Act of 1938 and the Life Insurance Corporation Act of 1956. Commentators, such as Bajaj General Insurance's MD and CEO Tapan Singhel, herald the bill as a significant reform, reflecting a governance model attuned to both citizen and industry needs, with an eye towards long-term development.

This policy shift is anticipated to attract fresh overseas capital, create jobs, and spur competition within the industry. As highlighted by Anup Rau, CEO of Generali Central Insurance, and other executives, this reform will strengthen balance sheets and enhance product offerings, while improving overall sector efficiency, thereby aligning with global standards and supporting India's broader development agenda.

(With inputs from agencies.)