Insurance Bill Today: FDI, Mergers to Stir Insurance Stocks

• The Insurance Amendment Bill (Sabka Bima Sabki Raksha) is set to be introduced in Lok Sabha, potentially causing significant movement in insurance stocks.
• The bill proposes allowing 100% Foreign Direct Investment (FDI) in the insurance sector, which could intensify competition.
• A provision for insurance companies to merge with non-insurance entities is included, seen as positive for Max Financial Services.
• The bill does not incorporate "Open Architecture," which is considered beneficial for companies like LIC and SBI Life.
• The exclusion of a Composite Insurance License is viewed negatively for HDFC Life, LIC, and Star Health, impacting their diversification plans.

Why It Matters: New Insurance Amendment Bill will bring major sector changes, impacting stock prices.