Industry leaders on Saturday hailed Union Cabinet’s approval of the Insurance Laws (Amendment) Bill, 2025 that raised the foreign direct investment limit to 100 per cent, saying it will attract capital, spur innovation and support broader insurance coverage.

The amendment also introduced composite licences, lowered capital requirements for new entrants and introduced perpetual registration for intermediaries. Sarbvir Singh, Joint Group CEO, PB Fintech, said the move “brings clarity, confidence and long term capital into a growing sector that plays a central role in strengthening financial security”. Global expertise and sustained investment can help accelerate innovation, improve consumer experience and expand access across the country, he said, adding that the reforms will raise the overall quality of service and unlock a significant amount of new capital. Increased competition will encourage wider product offerings and more sophisticated solutions, Singh further said.