The Department for Promotion of Industry and Internal Trade (DPIIT) has amended the foreign direct investment (FDI) policy to allow 100% Foreign Direct Investment (FDI) for insurance intermediaries, which includes insurance brooking, insurance companies, third party administrators, surveyors and loss assessors.
Insurance intermediaries are brokers or agents who liaise between insurance companies and customers.
Till now, FDI in the insurance sector was capped at 49% under the automatic route. According to the policy, FDI for insurance company is still capped at 49%.
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The government’s latest decision to ease FDI norms for the insurance sector will enable foreign brokerage companies to buy stake in Indian companies. This will bring in global practices in the country, which will include new insurance products and selling strategy. As a result, the right kind of product will be sold to the right client.
Finance minister Nirmala Sitharaman in the Union Budget last year said that 100% FDI will be permitted for insurance intermediaries.
Source: livemint
