Finshots Daily The Insurance Bill 2025 Explained
Dec 18, 2025
India is on the brink of a major overhaul of its insurance rulebook, drawing parallels to past economic liberalization. The new reform aims to boost insurance coverage for all by 2047, but it brings a cautious approach due to the unique risks in this sector. Enhanced powers for the insurance regulator may lead to faster decision-making. While relaxed foreign investment rules could increase competition, there's a warning about potential drawbacks, like impact on claim settlements. It's a careful balancing act between growth and consumer protection.
AI Snips
Chapters
Transcript
Episode notes
Reforms Aim For A Calibrated Reset
- India’s 1991 LPG reforms show how standardizing rules can unlock capital and scale industries rapidly.
- The Insurance Bill 2025 aims to do a similar calibrated liberalization for insurance while managing systemic risk.
Early Joint Ventures Shaped The Sector
- Early joint ventures like Bajaj with Alliance show how foreign partnerships shaped Indian insurance slowly.
- The sector raised FDI caps gradually from 26% to 74% without dramatic transformation.
Why Insurance Is Treated Differently
- Insurance failures hurt policyholders, so regulators move slowly and cautiously compared with other sectors.
- The bill balances growth incentives with safeguards to avoid social and political fallout from insurer failure.