100% FDI in insurance a ‘transformational reform’, says IBAI

The Cabinet’s endorsement of the Insurance Amendment Bill, 2025—especially the move to permit 100% Foreign Direct Investment in insurance—represents a significant reform for the industry, according to Narendra Bharindwal, President of the Insurance Brokers Association of India (IBAI), speaking on Friday.

“For insurers, increased capital access will enable deeper outreach in less-insured and rural markets, spur development of niche products like health, catastrophe, cyber, and longevity coverage, and support sustained investments in distribution networks, digital infrastructure, and workforce development,” Bharindwal noted.

Narendra Bharindwal, President, Insurance Brokers Association of India

This decision marks a critical stride toward achieving universal insurance coverage by 2047. As the sector expands, IBAI emphasized the importance of maintaining rigorous governance, stable solvency standards, and unwavering consumer safeguards to ensure sustainable growth.

The association further stressed that regulatory transparency, effective oversight, and equitable market conditions will be vital to transforming heightened competition into tangible benefits for policyholders.

Published on December 12, 2025