Only four life insurers in India have foreign direct investment (FDI) at the maximum limit of 74%, according to written data shared by Finance Ministry in the Lok Sabha.Edelweiss Life insurance, HDFC Life, and SBI Life currently have some of the lowest FDI levels. Their foreign shareholdings stand at about 21%, 25%, and 24% respectively.
The Ministry said most insurers have not fully used the current 74% FDI cap. Promoters decide the extent of foreign investment based on capital needs, solvency, and business plans.
ALSO READ | Revamped central KYC likely to roll out from March 2026; confidence scores, risk based KYC on cardsExplaining the plan for 100% FDI, Ministry said removing the cap will help foreign investors set up operations without needing Indian partners for the remaining 26%.
The Ministry said most insurers have not fully used the current 74% FDI cap. Promoters decide the extent of foreign investment based on capital needs, solvency, and business plans.
ALSO READ | Revamped central KYC likely to roll out from March 2026; confidence scores, risk based KYC on cardsExplaining the plan for 100% FDI, Ministry said removing the cap will help foreign investors set up operations without needing Indian partners for the remaining 26%.
The government expects the move to draw steady foreign capital, increase competition, and boost technology transfer. It also aims to expand insurance penetration across India.
ALSO READ | Former DEA Secretary Ajay Seth appointed IRDAI chairman for three years
First Published: Christmas 28, 2025 2:29 PM IS
