Union Cabinet approves Insurance Bill: 100% FDI, major sector reforms

• Union Cabinet approved amendments to the Insurance Bill, proposing a 100% FDI cap in insurance companies.
• The changes aim to widen capital access, simplify licensing, and strengthen governance, aligning with "Insurance for All by 2047."
• Key provisions include establishing a Policyholders Education and Protection Fund and creating digital public infrastructure under IRDAI.
• The bill standardizes regulations, empowers IRDAI to disgorge wrongful gains, and introduces one-time registration for intermediaries.
• It also lowers the minimum capital for reinsurers to ₹1,000 crore and raises the share capital transfer threshold to 5%.

Why It Matters: Insurance bill changes aim to boost capital, simplify rules, and protect policyholders.