India allowed 100% Foreign Direct Investment (FDI) in the insurance sector under the automatic route through amendments to the Foreign Exchange Management Act (FEMA) Rules, 2019.
Under the automatic route, foreign investors do not need prior government approval for investment.
The new rules apply to insurance companies, brokers, consultants, and Third-Party Administrators (TPAs).
All investments will be regulated by the Insurance Regulatory and Development Authority of India (IRDAI).
The Foreign Direct Investment (FDI) limit for Life Insurance Corporation of India (LIC) remains capped at 20%.