Quote on cabinet`s approval of the Insurance Amendment Bill by Mr. Narendra Bharindwal, President, Insurance Brokers Association of India (IBAI)
Below the Quote on cabinet`s approval of the Insurance Amendment Bill by Mr. Narendra Bharindwal, President, Insurance Brokers Association of India (IBAI)
The Cabinet’s approval of the Insurance Amendment Bill, 2025 - particularly the decision to allow 100% Foreign Direct Investment in insurance is a major, transformational reform for the sector and a decisive step towards realising the vision of Insurance for All by 2047.
Opening the sector fully to global capital sends a strong signal of confidence in India’s insurance market and regulatory maturity. This reform will enable insurers to access long-term capital, advanced risk-management expertise, global best practices and cutting-edge technology, critical ingredients for expanding insurance coverage, improving product innovation and strengthening claims and service capabilities across the country.
From an insurer’s standpoint, enhanced capital availability will support deeper penetration in under-insured and rural markets, facilitate the development of specialised products such as health, catastrophe, cyber and longevity covers, and allow companies to make sustained investments in distribution, digital infrastructure and human capital.
At the same time, as the sector opens up further, it is essential that growth remains anchored in strong governance, robust solvency norms and uncompromising policyholder protection. Regulatory clarity, effective supervision and a level playing field will be key to ensuring that increased competition translates into better outcomes for consumers.
This is a bold and forward-looking reform, and IBAI congratulates the Hon’ble Prime Minister and the Hon’ble Finance Minister for taking this significant step to unlock the insurance sector’s full potential. If implemented with a balanced and phased approach, the Amendment Bill can fundamentally reshape India’s insurance landscape, making it more resilient, inclusive and globally integrated.
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