Global insurers are accelerating their expansion plans in India following the country's decision to allow up to 100% foreign ownership in insurance companies, with South Korea's Hanwha Group and South Africa's Discovery among the latest firms exploring opportunities.
According to media reports, both insurers have been evaluating potential acquisitions and discussing strategic options with advisers as international players seek greater control over their Indian operations following the liberalisation of foreign direct investment (FDI) rules.
The move follows recent transactions by other global insurers. Germany's Allianz has partnered with Jio Financial Services to establish a new insurance joint venture after exiting its previous partnerships with Bajaj Finserv, while Hong Kong-headquartered Prudential agreed to acquire a 75% stake in Bharti AXA Life Insurance earlier this year.
India raised the FDI limit in the insurance sector from 74% to 100% in May, enabling overseas insurers to own their Indian businesses outright. Industry observers say the reform has accelerated discussions around market entry, acquisitions and ownership restructuring by removing the need for local joint venture partners.
India's insurance sector continues to attract international interest due to its long-term growth potential and relatively low insurance penetration.
According to the Economic Survey 2026, the sector managed assets worth INR74.4tn (approximately $780bn) in FY2025, while total premium income reached INR11.9tn.
Insurance penetration stood at 3.7% as of April, indicating significant room for expansion.
Several international insurers are also seeking greater ownership of their existing Indian operations.
Australia's QBE recently received regulatory approval to acquire its partner's stake and take full ownership of Raheja QBE General Insurance.
UK-based Aviva has announced plans to acquire Dabur Invest Corp.'s stake in Aviva Life Insurance, while US insurer Liberty Mutual has increased its shareholding in its Indian joint venture to 74%.
The growing interest reflects expectations that India's expanding middle class, rising insurance awareness and regulatory reforms will continue to support long-term growth in both the life and general insurance markets.