Mumbai, Dec. 16 -- Finance Minister Nirmala Sitharaman has tabled the Insurance Laws (Amendment) Bill, 2025 in the Lok Sabha, proposing wide-ranging reforms in the insurance sector.

The Bill introduces wide-ranging reforms to India's insurance framework by amending the Insurance Act, LIC Act and IRDAI Act, with a focus on liberalisation, modernisation and stronger regulation.

A key provision is the proposal to allow 100% foreign direct investment in insurance companies, aimed at attracting long-term capital, improving competition and expanding insurance coverage. The Bill also seeks to ease entry for foreign reinsurers by sharply reducing capital requirements, which could deepen reinsurance capacity and risk diversification.

Regulatory...