New Delhi, Dec 13 (LatestNewsX) – Business leaders welcomed the Union Cabinet’s decision on Saturday to approve the Insurance Laws (Amendment) Bill, 2025, which lifts the foreign‑direct‑investment ceiling to 100 %. They argue it will draw fresh capital, push technological progress, and widen insurance access across the country.
The draft also brings several key changes: it creates composite licences, eases the capital threshold for newcomers, and enacts a permanent registration regime for intermediaries.
Sarbvir Singh, Joint Group CEO of PB Fintech, said the reform “brings clarity, confidence and long term capital into a growing sector that plays a central role in strengthening financial security.” He added that attracting global expertise and steady investment could speed up innovation, refine customer experience, and broaden coverage nationwide. According to Singh, the overhaul will raise service standards overall and unlock a sizable amount of new capital, while heightened competition should drive a richer array of products and more refined solutions.
Balachander Sekhar, Co‑founder and CEO of RenewBuy, characterized the bill as a “forward‑looking and cohesive reform package” that lays the structural groundwork for a decade of transformation. He highlighted that composite licensing will foster unified, customer‑centric protection, and that streamlined capital rules should lure fresh entrants into underserved markets. Sekhar also noted that the combination of perpetual intermediary registration and updated investment guidelines positions the ecosystem for stability, rapid innovation, and wider reach.
Sekhar praised the 100 % FDI allowance, explaining that “access to global best practices and advanced technologies will directly translate into sharper risk assessment, faster claims, and significantly enhanced customer engagement.” He pointed out that the shift to perpetual registration eases repetitive compliance hassles and enables long‑term strategic planning, allowing firms to expand their footprint and improve service quality.
Rishi Mehra, CEO for India and Head of Strategy, Human Capital, Asia Pacific at Aon, underscored that allowing full FDI in insurance is a critical move for fortifying India’s risk and insurance landscape. He said it will fast‑track the country’s evolution toward a safer, more competitive, and future‑ready market—an essential pillar in India’s journey toward a Viksit Bharat.
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