The Cabinet’s approval of the Insurance Amendment Bill, 2025, particularly the decision to allow 100 per cent Foreign Direct Investment in insurance is a major, transformational reform for the sector, Narendra Bharindwal, President, Insurance Brokers Association of India (IBAI) said on Friday.
“From an insurer’s standpoint, enhanced capital availability will support deeper penetration in under-insured and rural markets, facilitate the development of specialised products such as health, catastrophe, cyber and longevity covers, and allow companies to make sustained investments in distribution, digital infrastructure and human capital,’’ he said.
Narendra Bharindwal, President, Insurance Brokers Association of India
It was a decisive step towards realising the vision of Insurance for All by 2047 while at the same time, as the sector opens up further, it is essential that growth remains anchored in strong governance, robust solvency norms and uncompromising policyholder protection.
Regulatory clarity, effective supervision and a level playing field will be key to ensuring that increased competition translates into better outcomes for consumers, IBAI said.
Published on December 12, 2025
