Insurance Amendment Bill: Winners and Losers in the Market

• Insurance Amendment Bill to be presented in Lok Sabha today.
• Bill proposes 100% FDI in the insurance sector, up from 74%.
• Allows insurance companies to merge with non-insurance entities, benefiting Max Financial Services.
• Does not include open architecture or composite insurance licenses, impacting various insurers differently.
• Proposes reducing capital requirement for reinsurance companies from ₹5,000 crore to ₹1,000 crore, potentially increasing competition for GIC Re.

Why It Matters: Insurance Amendment Bill will bring structural changes, affecting companies and competition.