The Ministry of Finance is currently accepting public feedback on proposed changes to important insurance laws. The deadline for submitting comments is December 10, 2024.

The draft bill, which is expected to be introduced during the ongoing winter session of Parliament, seeks to increase the foreign direct investment (FDI) limit in the insurance sector from 74% to 100%. This reform is anticipated to attract global players and promote competition in the market.

Along with the FDI increase, the proposed amendments also include provisions for composite licenses, which would allow insurers to offer life, general, and health insurance under a single entity. This change has long been advocated by the Insurance Regulatory and Development Authority of India (IRDAI).

The objective of these reforms is to enhance the accessibility and affordability of insurance, streamline industry processes, and support the government's goal of achieving "Insurance for all by 2047." The key laws affected by these amendments are the Insurance Act of 1938, the Life Insurance Corporation Act of 1956, and the Insurance Regulatory and Development Authority Act of 1999.