Insurance Laws Bill 2025 proposes composite licence, lower entry barriers and 100% FDI

CENTRE MOVES TO OVERHAUL INSURANCE SECTOR

- AMITAV RANJAN

Listed for introduction in the Winter Session of Parliament starting next Monday, the Insurance Laws (Amendment) Bill 2025 aims to make the sector more robust to further support the country's fast-paced economic growth while aligning with the government's long-term vision of "Insurance for All by 2047."

The proposed Bill provides for functional flexibility by introducing a composite licence that allows insurers to offer both life and general insurance products under one roof - instead of seeking separate licence for each vertical, said an official..

In case an insurer enters more than one class of insurance business, the regulatory authority IRDA would specify a paid-up equity capital equal to or higher than the sum of the paid-up equity capital required for each class of insurance business, he added.