Current Affairs - Finance - Discussion

The Insurance Amendment Bill, 2025 introduces a major reform by increasing the permissible FDI limit in insurance companies to 100%. This change reflects the government’s intention to open the sector fully to foreign investment, which is expected to bring in substantial capital inflows. Higher foreign participation can enhance competition, encourage innovation, and improve the quality and reach of insurance services in India. The reform aligns with the regulatory framework governed by the Insurance Act, LIC Act, and IRDAI Act, strengthening the sector’s growth potential.