Government of India Planning to Allow 100% Foreign Direct Investments in Insurance Broking

India may be opening its doors to 100% foreign direct investment (FDI) for insurance broking. The current FDI policy in place only allows 49% of foreign investment in the insurance sector. That covers insurance companies, insurance broking, and third-party administrators as defined by the country’s Department of Industrial Policy & Promotion.

A government official has recently made remarks that insurance brokers shall be treated as financial services intermediaries than a part of the insurance sector, as it deals with commodity broking services more than insurance itself. The policy concerning this is now being reviewed, and if passed, insurance broking will be categorised as part of financial services which allows 100% FDI.

This development will potentially open doors to international IPMI brokers in the country and new ways to approach the IPMI market for India.