Overview
- DPIIT’s Press Note 1 (2026 Series) implements the new policy under the 2025 insurance law, with most provisions effective from February 5 and Section 25 deferred.
- Foreign investment, including portfolio flows, is permitted in domestic insurers via the automatic route subject to IRDAI regulatory verification.
- The Life Insurance Corporation of India remains limited to 20% foreign investment through the automatic route.
- Safeguards include at least one resident Indian serving as chairperson, managing director or CEO, and compliance with RBI pricing under FEMA for any increase in foreign shareholding.
- Insurance intermediaries fall under the 100% limit subject to IRDAI norms, with banks in such roles tied to primary-sector caps if non-insurance revenue exceeds 50% and majority foreign-owned intermediaries required to incorporate as limited companies.