India's Insurance Sector Transformed: New Law Boosts Capital, Trust, Growth

• Parliament passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, a turning point for India's insurance sector.
• Allows 100% Foreign Direct Investment (FDI) in insurance companies, attracting crucial capital for the capital-intensive industry and boosting penetration.
• Introduces measures for ease of doing business, including one-time registration for intermediaries and perpetual licensing for regulators.
• Strengthens consumer protection with a Policyholders’ Education and Protection Fund under IRDAI and empowers IRDAI to deter misconduct.
• Aims to achieve "Insurance for All by 2047" and bridge the 90% protection gap, aligning with the Viksit Bharat vision.

Why It Matters: New insurance law with 100% FDI and consumer safeguards marks a pivotal moment for India's growth.