The Indian central government has officially notified the allowance of 100% Foreign Direct Investment (FDI) in domestic insurance companies, effective from February 5, 2025. This move is aimed at increasing foreign participation in the insurance sector and aligns with the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. However, the Life Insurance Corporation of India (LIC) will continue to operate under a separate framework, restricting foreign investment to 20%. The Department for Promotion of Industry and Internal Trade issued the notification, stating that foreign investments will be subject to regulatory clearance from the Insurance Regulatory and Development Authority of India (IRDAI). Additionally, insurance companies with foreign investment must appoint at least one Indian citizen as a key executive. The new policy also extends the 100% FDI limit to insurance intermediaries, including brokers and third-party administrators, while ensuring compliance with existing regulations.