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Tuesday, February 11, 2025 | 06:24 PM ISTEN Hindi

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100% FDI in Insurance: Foreign insurers may face distribution challenges

The opening up of the insurance industry to 100 per cent FDI comes at a time when the insurance regulator has been advocating "Insurance for All" by 2047

Budget 2025-26: Higher FDI limit in insurance to foster innovation
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Illustration: Ajaya Mohanty

Subrata PandaAathira Varier Mumbai

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Though the Budget proposal to increase the foreign direct investment (FDI) limit in the insurance sector to 100 per cent from the current 74 per cent is expected to bring in independent foreign insurers into the segment, as they no longer have to look for a minority Indian partner, but for them navigating the complexities of distribution landscape in the Indian market will require a considerable effort, said industry insiders.
 
In the Indian insurance market, bank-led distribution dominates the private life insurance sector, while the agency channel is preferred for non-life insurance, making it challenging for foreign insurers to navigate

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