Overview

• Finance Minister Nirmala Sitharaman informed Lok Sabha that the Union Budget proposal raises the FDI cap in the insurance sector from 74% to 100%.
• The government projects the liberalisation will drive 7.1% annual growth over the next five years, outpacing global insurance markets.
• Removing the 26% partner requirement is expected to simplify market entry for foreign insurers and boost competition.
• The draft bill also proposes composite licensing for life, general and health insurance under a single entity and relaxes conditions on dividend repatriation and key management personnel.
• Parliament has yet to list the insurance amendment bill in the current session, with formal debate slated for the upcoming winter session.