Parliament Clears Insurance Bill Allowing 100% FDI

22 Dec 2025 CW Team

A key provision of the Bill allows up to 100 per cent foreign direct investment in insurance companies, opening the sector to greater global participation. The move is expected to support capital augmentation, adoption of advanced technologies and infusion of global best practices, while increasing competition to improve efficiency in insurance products and services for citizens.

To promote ease of doing business, the Bill introduces one-time licensing for intermediaries and provides for suspension of licences instead of immediate cancellation. For insurers, the threshold for prior regulatory approval for transfer of share capital has been increased from one per cent to five per cent. The net owned fund requirement for foreign reinsurance branches has also been reduced from Rs 50 billion to Rs 10 billion. Life Insurance Corporation of India has been granted greater operational autonomy, including the ability to open zonal offices and align overseas operations with local regulations.

Policyholder protection has been strengthened through the creation of a dedicated Policyholders’ Education and Protection Fund to promote insurance awareness. The Bill also mandates that policyholder data be collected and protected in line with the Digital Personal Data Protection Act, 2023.

Regulatory governance is further reinforced by introducing a consultative and standardised process for regulation-making. Insurance Regulatory and Development Authority of India has been empowered to disgorge wrongful gains from insurers and intermediaries, with rationalised penalties and defined criteria for their imposition.

The reforms are expected to expand insurance penetration, strengthen financial resilience and support long-term growth of India’s insurance ecosystem.

Parliament has recently passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, marking a major reform in India’s insurance sector. The legislation amends the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999 to expand coverage, improve governance and enhance ease of doing business. A key provision of the Bill allows up to 100 per cent foreign direct investment in insurance companies, opening the sector to greater global participation. The move is expected to support capital augmentation, adoption of advanced technologies and infusion of global best practices, while increasing competition to improve efficiency in insurance products and services for citizens. To promote ease of doing business, the Bill introduces one-time licensing for intermediaries and provides for suspension of licences instead of immediate cancellation. For insurers, the threshold for prior regulatory approval for transfer of share capital has been increased from one per cent to five per cent. The net owned fund requirement for foreign reinsurance branches has also been reduced from Rs 50 billion to Rs 10 billion. Life Insurance Corporation of India has been granted greater operational autonomy, including the ability to open zonal offices and align overseas operations with local regulations. Policyholder protection has been strengthened through the creation of a dedicated Policyholders’ Education and Protection Fund to promote insurance awareness. The Bill also mandates that policyholder data be collected and protected in line with the Digital Personal Data Protection Act, 2023. Regulatory governance is further reinforced by introducing a consultative and standardised process for regulation-making. Insurance Regulatory and Development Authority of India has been empowered to disgorge wrongful gains from insurers and intermediaries, with rationalised penalties and defined criteria for their imposition. The reforms are expected to expand insurance penetration, strengthen financial resilience and support long-term growth of India’s insurance ecosystem.

Technology

29 Jul 2026

AI-Enabled Workflows Lift Profitability and Productivity

Organisations modernising frontline workflows with artificial intelligence, automation and real-time data are reporting stronger financial performance, higher productivity and improved employee engagement, according to a global study by Zebra Technologies and Oxford Economics.The research covered 1,000 senior leaders across retail, manufacturing, transportation and logistics in the US, Mexico, the UK, Germany, India, Japan, Australia and New Zealand.In transportation and logistics, 54 per cent of companies that improved picking and packing operations reported faster operational performance, wh..

Real Estate

29 Jul 2026

India Leads Global AI Readiness but Implementation Lags

Indian companies lead global averages across all eight artificial intelligence readiness indicators tracked by JLL, but only 19 per cent have started making changes to their workplaces, according to the JLL 2026 Future of Work Survey.The study found that 77 per cent of Indian business leaders expect AI to change their office requirements, creating a 58-percentage-point gap between awareness and implementation. The survey covered more than 2,200 CEOs, CFOs and real estate leaders across 21 countries during the first quarter of 2026.Despite concerns over automation, 58 per cent of Indian leaders..

Equipment

29 Jul 2026

Three WOLFF Cranes Build Riyadh Cable-Stayed Bridges

Three WOLFF 180 B luffing jib cranes are supporting the construction of two cable-stayed bridges alongside the existing Wadi Laban Bridge in Riyadh, Saudi Arabia. The project is being developed for the Royal Commission for Riyadh City and executed by the ICRC joint venture comprising IC Ictas and Al Rashid Trading & Contracting Company.The cranes are handling lifting operations including formwork, reinforcement, concrete placement, work platforms, surveying equipment and other construction materials. Each crane is fitted with a 40 m jib, reaches a hook height of 157 m and offers a maximum ..