Insurance Laws (Amendment) Act, 2025

India threw its insurance sector fully open to foreign capital at the close of 2025. On 17 December, Parliament cleared the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, raising the foreign-investment ceiling from 74 percent to a full 100 percent and rewriting three foundational statutes in one stroke. Pitched around the promise of "insurance for all by 2047", the new law also hands the IRDAI sharper tools: authority to claw back ill-gotten gains and a tenfold jump in its penalty ceiling, alongside a dedicated fund to educate and shield policyholders. With cover still reaching barely 3.7 percent of GDP, the reform bets that foreign money and lighter compliance can finally stretch India's thin insurance net.