Industry leaders on Saturday hailed Union Cabinet’s approval of the Insurance Laws (Amendment) Bill, 2025 that raised the foreign direct investment limit to 100 per cent, saying it will attract capital, spur innovation and support broader insurance coverage.
The amendment also introduced composite licences, lowered capital requirements for new entrants and introduced perpetual registration for intermediaries.
Sarbvir Singh, Joint Group CEO, PB Fintech, said the move “brings clarity, confidence and long term capital into a growing sector that plays a central role in strengthening financial security”.
Global expertise and sustained investment can help accelerate innovation, improve consumer experience and expand access across the country, he said, adding that the reforms will raise the overall quality of service and unlock a significant amount of new capital.
Increased competition will encourage wider product offerings and more sophisticated solutions, Singh further said.
Balachander Sekhar, Co-founder and CEO of RenewBuy, labelled the bill as a “forward‑looking and cohesive reform package” that lays the structural foundation for a decade of sectoral transformation.
He said composite licensing will enable unified, customer‑centric protection and rationalised capital norms will invite new participants to serve underserved markets.
Combined with perpetual intermediary registration and modernized investment norms, the ecosystem becomes primed for stability, innovation, and accelerated penetration, Sekhar added.
Balachander Sekhar hailed the move to introduce 100 per cent FDI, as “access to global best practices and advanced technologies will directly translate into sharper risk assessment, faster claims, and significantly enhanced customer engagement.”
The shift to perpetual registration for intermediaries reduces frequent compliance friction and promotes long-range planning, allowing us to focus on scaling reach and enhancing customer service, he added.
Rishi Mehra, CEO, India and Head of Strategy, Human Capital, Asia Pacific, Aon, said that allowing 100 per cent FDI in insurance is a pivotal step toward strengthening India’s risk and insurance ecosystem.
For India, it accelerates our progress toward a more secure, competitive, and future‑ready insurance market an essential building block in the country’s journey toward a Viksit Bharat, he mentioned.
