Officials are discussing a proposal to increase the foreign direct investment (FDI) limit for insurance to 100%, from the current 74%, a move which has the backing of the Insurance Regulatory and Development Authority (IRDAI).
Other proposals to ease FDI rules for the sector, such as the mandate to have Indians in certain top management positions, are also being reviewed, reported Times of India, quoting officials privy to the talks.
The proposed changes are pending finalisation with IRDAI. Any change will require an amendment to the Insurance Act.
The Indian insurance sector was first opened up to foreign investment in 2000, and the then FDI ceiling was set at 26% stake. The limit was later raised to 46% in 2015 and then to the current 74% in 2021.