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Cabinet approves 100% FDI in insurance sector

The Free Press Journal

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December 13, 2025

The move will unlock global capital flows and reshape the pricing, competition and innovation

- Palazhi Ashok Kumar

In a sweeping reform set to redefine the contours of India's financial services industry, the Union Cabinet on Friday approved a bill allowing 100% Foreign Direct Investment (FDI) in insurance companies, opening the doors for complete foreign ownership for the first time in the sector's history.

The move, hailed across industry circles as bold and forward-looking, is expected to unleash a surge of global capital, expertise and advanced technology.

Analysts say the reform will heighten competition, sharpen pricing and widen product innovation-developments that are likely to benefit policyholders, investors and the broader economy alike.

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