Why we need more foreign insurers

The government plans to introduce the Insurance Amendment Bill 2024, proposing 100% foreign direct investment (FDI) in the insurance sector, up from 74%. It also aims to introduce composite licenses, letting insurers offer life, health, and general insurance under one entity. These changes target India's low insurance penetration of 4% by attracting foreign players and enabling innovative, cost-effective policies. Additionally, the Bill may reduce entry barriers by lowering capital requirements and allowing agents to sell policies from multiple insurers. Experts believe these reforms will bring global expertise, strengthen the sector, and simplify operations.

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