<p>New Delhi: The Union cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Insurance Laws (Amendment) Bill 2025, which seeks to deepen insurance penetration and raise the foreign direct investment (FDI) cap in the sector to 100% from the current 74%, sources said.</p><p>The Bill, to amend the Insurance Act of 1938, is likely to be introduced in the ongoing winter session of Parliament, which is slated to end on December 19.</p><p>A Lok Sabha bulletin has listed the Insurance Laws (Amendment) Bill 2025 among the key legislative items planned for discussion in the ongoing session. The key objectives of the Bill, according to the Lok Sabha bulletin, are to “deepen penetration, accelerate growth, and promote ease of doing business in the insurance sector”.</p><p>The changes in the insurance regulations are likely to come into force nearly a year after the announcements were made in this regard by Finance Minister Nirmala Sitharaman in the Union Budget presented on February 1, 2025.</p>.100% FDI in insurance to attract capital flow, innovative products.<p>The enhanced FDI limit is likely to come with a rider. Such companies will be required to invest the entire premium in India.</p><p>“Opening the sector fully to global capital sends a strong signal of confidence in India’s insurance market and regulatory maturity,” said Narendra Bharindwal, president, Insurance Brokers Association of India.</p><p>This reform will enable insurers to access long-term capital, advanced risk-management expertise, global best practices and cutting-edge technology, critical ingredients for expanding insurance coverage, improving product innovation and strengthening claims and service capabilities across the country, he said.</p><p>From an insurer’s standpoint, according to Bharindwal the enhanced capital availability will support deeper penetration in under-insured and rural markets, facilitate the development of specialised products such as health, catastrophe, cyber and longevity covers, and allow companies to make sustained investments in distribution, digital infrastructure and human capital.</p>
<p>New Delhi: The Union cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Insurance Laws (Amendment) Bill 2025, which seeks to deepen insurance penetration and raise the foreign direct investment (FDI) cap in the sector to 100% from the current 74%, sources said.</p><p>The Bill, to amend the Insurance Act of 1938, is likely to be introduced in the ongoing winter session of Parliament, which is slated to end on December 19.</p><p>A Lok Sabha bulletin has listed the Insurance Laws (Amendment) Bill 2025 among the key legislative items planned for discussion in the ongoing session. The key objectives of the Bill, according to the Lok Sabha bulletin, are to “deepen penetration, accelerate growth, and promote ease of doing business in the insurance sector”.</p><p>The changes in the insurance regulations are likely to come into force nearly a year after the announcements were made in this regard by Finance Minister Nirmala Sitharaman in the Union Budget presented on February 1, 2025.</p>.100% FDI in insurance to attract capital flow, innovative products.<p>The enhanced FDI limit is likely to come with a rider. Such companies will be required to invest the entire premium in India.</p><p>“Opening the sector fully to global capital sends a strong signal of confidence in India’s insurance market and regulatory maturity,” said Narendra Bharindwal, president, Insurance Brokers Association of India.</p><p>This reform will enable insurers to access long-term capital, advanced risk-management expertise, global best practices and cutting-edge technology, critical ingredients for expanding insurance coverage, improving product innovation and strengthening claims and service capabilities across the country, he said.</p><p>From an insurer’s standpoint, according to Bharindwal the enhanced capital availability will support deeper penetration in under-insured and rural markets, facilitate the development of specialised products such as health, catastrophe, cyber and longevity covers, and allow companies to make sustained investments in distribution, digital infrastructure and human capital.</p>