India’s Union Cabinet has approved the Insurance Amendment Bill, 2025, raising the foreign direct investment cap in the insurance sector from 74 percent to 100 percent. The decision aims to attract long-term capital, encourage technology transfer and support India’s objective of universal insurance coverage by 2047. The amendment mandates that at least one senior executive be an Indian citizen and permits mergers between insurance and non-insurance firms. Analysts believe the reform could reshape insurance technology, reinsurance, risk management and digital services, potentially influencing Nepal’s insurance industry, where foreign participation remains limited and largely confined to joint ventures.
