Parliament has cleared the move to 100% FDI in insurance, completing a reform journey that began in 2000
With penetration at just 3.7% of GDP, India’s insurance market remains far below global averages despite having 70+ insurers
Higher foreign ownership can bring capital, innovation and stronger governance to help insurers scale faster
The law moves key rules from statute to regulation, giving Irdai flexibility over licences, commissions and solvency norms
Niche licences for areas like cyber or marine insurance could deepen markets, with composite licences a possible next step
Reforms will succeed only if better regulation improves trust, speeds up claims and expands insurance to the last mile