Cabinet approves 100% FDI in insurance sector

• The Indian government has approved increasing Foreign Direct Investment (FDI) in the insurance sector from 74% to 100%.
• This decision aims to attract long-term foreign capital, strengthen insurance companies' financial health, and improve solvency levels.
• The move is expected to boost competition, foster innovation, and potentially reduce insurance costs for policyholders.
• Other proposed reforms, such as composite licensing and capital condition relaxations, have been temporarily deferred.
• The Insurance Amendment Bill, including the FDI increase, will now be presented in Parliament for approval.

Why It Matters: Government approves 100% FDI in insurance, attracting capital and increasing competition.