New Delhi, Dec. 12 -- The union Cabinet has approved a major change in India's insurance regulations by clearing the proposal to allow100 per cent foreign direct investment in insurance companies.
The decision is part of the Insurance Amendment Bill, 2025, which will be introduced in Parliament during the ongoing session.
The approval lifts the existing 74 per cent cap on foreign ownership and opens the sector to complete foreign control under regulatory supervision.
The reform aims to expand capital availability for insurers, support balance-sheet strength, and increase the sector's capacity to handle India's growing demand for life, health and non-life insurance products.
The new framework enables fully foreign-owned insurers to opera...