Irdai may go for 100% FDI in 'new' insurance biz to expand scope of sector

In Budget FY21, Finance Minister Nirmala Sitharaman had announced raising the cap of FDI to 74 per cent for insurance companies with effect from August 2021

The insurance regulator may allow 100 per cent foreign direct investment (FDI) in new lines of insurance business to expand the scope of the sector. At present, the upper limit for FDI is 74 per cent into companies that write insurance cover.

For insurance intermediaries, like brokerages and others, who bring together customers and insurance firms, 100 per cent foreign investment is allowed.

Speaking at an event of the insurance industry in Mumbai last week, Debasish Panda, the new chairman of the Insurance Regulatory and Development Authority of India (Irdai) said he plans to work on the “creation of a framework to