Last Updated:
FDI in Insurance- Experts say that the common man along with the companies will benefit from the increase in FDI in the insurance sector. This decision will affect both the pocket and safety of the common man.
New Delhi. The government will introduce a bill to increase the limit of foreign direct investment (FDI) in the insurance sector to 100 percent in the upcoming winter session of Parliament. The winter session of Parliament will start from December 1 and continue till December 19. There will be a total of 15 working days in this session. According to the Lok Sabha bulletin, the Insurance Laws (Amendment) Bill 2025 is included in the list of 10 bills to be introduced in the upcoming session of Parliament. In 2015, the government increased the FDI limit in the insurance sector from 26% to 49%. After this, in the year 2021, this limit was increased again from 49% to 74%.
In this year’s budget speech, Finance Minister Nirmala Sitharaman had proposed to increase the current 74 percent limit of foreign investment in the insurance sector to 100 percent. This proposal is part of the new generation financial sector reforms. So far, Rs 82,000 crore has been attracted through foreign direct investment (FDI) in the insurance sector.
Will the common man benefit?
Experts say that the increase in FDI in the insurance sector will benefit not only the companies but also the common man. This decision will affect both the pocket and safety of the common man. The biggest benefit of increasing the limit of foreign investment (FDI) in the insurance sector is that companies will get more capital. When companies increase money, they bring in new technology, improve their services and expand their scope. Customers get direct benefits from this. More choices, more reliable services and lower premium rates.
According to Moody’s, many foreign investors who are already present in India through joint ventures want to increase their stake. With the increase in borders, more capital from these companies will come to India. Apart from this, big insurance companies of the world can also enter the Indian market. When these companies come together with their advanced products and global experience, Indian customers will get more modern, tailored and more secure insurance options. This will increase the scope of insurance and more people will get financial security.
