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.

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

The Union Cabinet on Friday approved a bill to raise foreign direct investment in the insurance sector to 100 per cent, according to sources.

The bill may be introduced in the ongoing Winter session of Parliament, which is slated to conclude on December 19.

According to a Lok Sabha bulletin, the Insurance Laws (Amendment) Bill 2025, which seeks to deepen penetration, accelerate growth and development of the insurance sector and enhance ease of doing business, is part of the 13 legislations listed for the upcoming session of Parliament.

Finance Minister Nirmala Sitharaman, in this year’s Budget speech, proposed to raise the foreign investment limit to 100 per cent from the existing 74 per cent in the insurance sector as part of new-generation financial sector reforms.

So far, the insurance sector has attracted ₹82,000 crore through foreign direct investment (FDI).

The finance ministry has proposed amending various provisions of the Insurance Act, 1938, including raising FDI in the insurance sector to 100 per cent, reducing paid-up capital, and introducing a composite licence.

As part of a comprehensive legislative exercise, the Life Insurance Corporation Act 1956 and the Insurance Regulatory and Development Authority Act 1999 will be amended, alongside the Insurance Act 1938.

The amendments to the LIC Act propose empowering its board to take operational decisions, such as branch expansion and recruitment.

The proposed amendment primarily focuses on promoting policyholders’ interests, enhancing their financial security, and facilitating the entry of additional players into the insurance market, thereby driving economic growth and employment generation.

Such changes will help enhance the efficiency of the insurance industry, enable ease of doing business, and enhance insurance penetration to achieve the goal of ‘Insurance for All by 2047’.

The Insurance Act of 1938 serves as the principal Act to provide the legislative framework for insurance in India. It provides the framework for the functioning of insurance businesses and regulates the relationships among insurers, their policyholders, shareholders, and the regulator, Irdai.

Published on December 12, 2025

 Comex gold is holding above its 20-day exponential moving average near $4,200, with the next resistance zone opening toward $4,350. In India, MCX gold broke out to lifetime highs near ₹1,32,776, with support at ₹1,31,400. 
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Gold extended its rally to a seven-week high above $4,275 per ounce on Friday, while silver climbed toward a record peak of $64.31 on Comex, following the US Federal Reserve’s 25 basis point interest rate cut to 3.50 per cent-3.75 per cent.

The precious metals surge came as Chair Jerome Powell’s remarks were interpreted as modestly dovish, prompting traders to increase expectations for further monetary easing. The Fed also announced plans to purchase approximately $40 billion in short-dated Treasury bills to ease money market strains, a move expected to cap upward pressure on short-term yields and support bullion prices.

Gold broke past the key near-term resistance level of $4,240, gaining more than 1 per cent in the session. Comex gold is holding above its 20-day exponential moving average near $4,200, with the next resistance zone opening toward $4,350. In India, MCX gold broke out to lifetime highs near ₹1,32,776, with support at ₹1,31,400.

Silver outperformed gold in both global and domestic markets, decisively breaking above the $64 level to reach a new 52-week high. The white metal’s rally was supported by supply squeeze concerns, stimulus news from China, and increased ETF inflows. Comex silver broke above its upper channel resistance near $63.80, with analysts expecting the metal to maintain positive momentum as long as it holds above $60.

“Lower rates reduce the opportunity cost of holding non-yielding assets like gold and silver, attracting fresh investment flows,” said Hareesh V, Head of Commodity Research at Geojit Investments Limited. He noted that the post-cut weakening of the U.S. dollar further supports prices by making metals more affordable for global buyers.

The dollar index dropped to a two-month low, adding to bullion’s appeal. Domestic prices in India received additional support from rupee depreciation against the dollar.

Published on December 12, 2025