Parliament is considering a bill that would increase the foreign direct investment (FDI) limit in the insurance sector to 100% and introduce composite licenses for insurers.

This legislative move, expected during the current Winter Session, aims to enhance the operational capabilities of insurance companies by allowing them to offer a wider range of products, including life, general, and health insurance under a single entity.

Currently, life insurers are prohibited from selling health insurance and vice versa. The proposed amendment is expected to address these limitations, enabling insurers to significantly diversify their offerings.

Additionally, the bill may enable insurance agents to sell policies from multiple companies, thereby promoting competition and providing consumers with more choices in the market.