India's Insurance Bill Ditches Composite License: FDI Focus Takes Center Stage

India's Insurance Laws (Amendment) Bill 2025, approved by the Union Cabinet on December 12, excludes the much-discussed composite licensing framework from earlier drafts. This shift prioritizes raising FDI to 100% from 74%, aiming to attract global capital and boost sector penetration without overhauling product silos immediately.​

Key Reforms Snapshot

Retains rigid separation of life, general, and health insurers, postponing unified licenses due to RBI guidelines and industry resistance on competition.​

Advances 100% FDI for foreign reinsurers and insurers, slashing entry barriers like net-owned funds from ₹5,000 crore to ₹1,000 crore.​

Includes perpetual intermediary registrations and multi-insurer agent flexibility to ease distribution and cut compliance costs.​

The streamlined Bill targets 'Insurance for All by 2047,' fostering innovation via foreign tech while navigating domestic pushback on composites.​

Sources: Moneycontrol, Economic Times, National Herald India