New Delhi, May 5 -- The Finance Ministry last week notified 100% foreign direct investment (FDI) in the insurance sector under the automatic route.

While 100% foreign investment will be allowed in insurance companies and intermediaries, including brokers, under the automatic route, the cap is 20% for Life Insurance Corporation (LIC), said the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2026.

"The government's decision to allow 100% FDI in insurance through the automatic route is a structural reform that directly benefits Indian consumers. While FDI at 74% invited global insurers for a majority stake, this step will make all the difference in terms of enhancing technology, product design and long-term com...