Union Cabinet approves big changes to India's insurance laws

Business Dec 15, 2025

India's government just cleared the Sabka Bima Sabki Raksha Bill, 2025—a major update to the country's old insurance rules.
The headline change: foreign investors can now own up to 100% of Indian insurers (up from 74%).
The bill also tweaks laws from as far back as 1938 and aims to make insurance more accessible for everyone.

What else is changing?

The move is expected to bring in much more global investment—right now, India has about 70 insurers, while there are thousands worldwide.
The bill also gives LIC (Life Insurance Corporation) more freedom in how it operates and makes it easier for foreign reinsurers to enter the market.
However, some hoped-for reforms like composite licenses and lower startup costs for new insurers didn't make it in this round.