FinMin allows 100% FDI in insurance intermediaries

Mixed reactions have been evoked as Finance Minister Nirmala Sitharaman’s declared to allow 100% foreign direct investment (FDI) in insurance intermediaries. The finance minister stated that the government will examine suggestions of further opening up of FDI in sectors, inclusive of insurance, and will also allow 100% FDI for insurance intermediaries. In the insurance sector, FDI is now capped at 49% under the automatic route including insurance broking, insurance companies, third party administrators, surveyors and loss assessors. “The government has taken a view on increasing FDI in the sector from a macro perspective. The move will have both pros and cons,” said G Srinivasan, Director, National Insurance Academy, and former Chairman, New India Assurance.