Insurance FDI to 100%: Industry Welcomes Reform, Expects Gradual Impact

• Union Cabinet likely to approve changes to the Insurance Laws (Amendment) Bill, aiming to reshape India's insurance sector.
• The bill proposes raising the foreign direct investment (FDI) cap in insurance companies to 100%.
• Industry executives believe 100% FDI will improve capital access and strategic flexibility, but may not immediately boost market penetration.
• Higher foreign participation is expected to support investment in technology, underwriting capacity, and product development.
• The government intends to introduce the legislation during the ongoing Winter Session of Parliament.

Why It Matters: 100% FDI in insurance could bring capital, tech, and innovation to India.