According to people familiar with the matter, several entities including American-Swiss insurer Chubb, South Africa’s Old Mutual, and US investment firms Tiger Global Management and Bain Capital are assessing opportunities in the Indian insurance market. Earlier reports suggested US-based Blackstone Inc was considering an entry into general insurance, though the firm has denied this.
Both Chubb and Old Mutual were previously present in India but exited. Chubb partnered with HDFC before leaving in 2007, while Old Mutual exited its life insurance joint venture with Kotak Mahindra Bank in 2017.
Emails seeking comment from these firms remained unanswered until the time of going to press.
Industry executives attribute the renewed interest to regulatory reform and improving market conditions. “The surge in global interest reflects reforms such as 100 per cent FDI, improved investment norms, and enhanced management control for foreign players,” said an insurance industry insider. “While long-term growth prospects are strong, challenges persist around disclosure standards, underwriting practices, high acquisition costs, and limited historical success in health insurance.”
Foreign investors appear more inclined towards non-life than life insurance, citing simpler distribution models. Life insurance remains heavily dependent on agency networks and bancassurance, making market entry relatively complex.
“There is a flurry of activity in general insurance,” another executive said. “In life, players remain cautious because distribution is critical. Interest is particularly strong among US private equity and venture capital firms, especially after a Westbridge-backed general insurer secured a licence.”
The Insurance Regulatory and Development Authority of India (Irdai) recently approved KIWI General Insurance, backed by Westbridge Capital. Separately, Australia’s QBE Insurance group has agreed to acquire the remaining 51 per cent stake in Raheja QBE General Insurance from Prism Johnson for ~324 crore, subject to approvals, positioning it to take full ownership following the policy change.
Other developments, too, underscore broader sector momentum. The Mahindra group and Canada’s Manulife plan a 50:50 life insurance joint venture with ~3,600 crore each. UK-based Prudential plc has partnered with HCL group to launch a standalone health insurer, while Angel One is preparing a digital-first life venture with LivWell.
Another proposed general insurance venture involves the M Pallonji group, True North and Federal Bank, according to reports.
Parliament approved raising the FDI cap in insurance to 100 per cent from 74 per cent in December 2025, with Presidential assent following shortly after. The Ministry of Finance formally notified the change on May 2.
Industry experts also point to the planned adoption of global accounting standards such as IFRS and risk-based capital norms as supportive for long-term growth. In a recent interview with Business Standard, Hans De Cuyper, chief executive of Ageas, said that while global interest in India remains strong, high valuations and regulatory uncertainty continue to weigh on prospective entrants.
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