India opens doors to 100% foreign investment in insurance
India just raised the cap on foreign direct investment (FDI) in its insurance sector from 74% to a full 100%.
The new rules, part of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, passed this December, kick in from December 30, 2025.
Restrictions like needing mostly Indian directors and strict dividend rules are out, making it much easier for global players to invest and operate here.
Why should you care?
This move is set to bring more international money, tech, and fresh ideas into India's insurance market—think better products and wider coverage, especially for people outside big cities.
The capital requirement for foreign reinsurance branches has also dropped sharply.
With these changes, getting insured could become simpler and more affordable as competition heats up.
Plus, IRDAI will keep an eye on things so consumer interests stay protected.