Cabinet approves 100% FDI in insurance; composite licensing on hold

• Central Cabinet approved 100% Foreign Direct Investment (FDI) in the insurance sector on December 12.
• This decision raises the foreign investment limit in Indian insurance companies from 74% to 100%.
• The government plans to introduce the Insurance Amendment Bill in the winter session of Parliament.
• The move aims to attract long-term foreign capital, strengthen balance sheets, and enhance competition and product innovation.
• However, the proposal for composite licensing in the insurance sector was not approved and remains on hold.

Why It Matters: 100% FDI in insurance will bring more capital, competition, and potentially better services.