100% FDI in Insurance: Amendments Planned for Monsoon Session
Why in the news
The Centre is preparing Insurance Act changes for the Monsoon Session to lift the foreign investment limit to 100%.
Key facts
- Foreign insurers may have mostly nonresident directors and foreign CEO or MD.
- Matches demands long voiced by the U.S. government, USTR and the Coalition of Services Industry (CSI).
| Aspect | 2021 | 2025 (proposed) |
|---|---|---|
| FDI cap | 49% raised to 74% | 100% |
| Board | 50% must be resident Indian citizens | Residency rules eased |
| KMP | One resident Indian CEO/MD | Eased |
| Other safeguards | Dividend and repatriation limits; more disclosures | Under review |
Exam angle
- Cap path: 49%, 74% (2021), 100% proposed.