3 min readMumbaiJul 1, 2026 03:24 AM IST
First published on: Jun 30, 2026 at 10:54 PM IST
Foreign interest has notably picked up since the Centre raised the FDI cap in the sector to 100%, said Ajay Seth, the chief of the country’s insurance regulator, which he said has already approved two applications by global players for picking up significant stakes in Indian general insurance companies.
“We have already given 2 licenses to general insurance. One was approved yesterday,” the Insurance Regulatory and Development Authority of India (IRDAI) chairman said Tuesday.
Seth, however, did not divulge the identities of these two entities.
“A lot more interest is coming on the general insurance side,” he added, speaking at an Insurance Awareness Committee event in Mumbai.
This is because growth in the general insurance sector has far outpaced that seen in the life insurance sector, Seth said.
He said that the life insurance sector also has the potential to grow at the same pace as the general insurance segment if the demand in the segment is tapped.
“For some of the foreign promoters seeking to get into 100% ownership, few conversations are happening. And one application has been approved already, and another one is with us at this point. Not 100%, but going up to a fairly large number, with the intent to maybe go the full way at some point of time,” Seth said.
Alongside these, the regulator has also very recently received an application for a life insurance entity.
“That was a very welcome development, because a large foreign insurer coming and taking a big position shows that not only us, but even foreign investors and promoters feel that there is potential in the sector,” Seth said.
Union Finance Minister Nirmala Sitharaman announced relaxation of the foreign direct investment limit in the insurance sector to 100% from 74% during the Union Budget 2026-27 in February.
Seth also said that the initial products under the Bima Sugam initiative are expected to be launched by September.
“It is behind schedule, but I do expect that by September end, the initial products should be available. The key products that are being prioritised are motor, health, and term insurance,” said Seth.
The progress of the initiative also depends on the readiness of the background tech by both term and life insurers in order to be connected to a single large platform.
“The idea is a market infrastructure institution. All insurers have put in money. Good quality product at a much lower cost because that platform does not have to survive on high commissions,” the IRDAI chief added.
The insurance-sector regulator had first announced the ambitious project in 2022 with the goal of “insurance for all” by 2047.
The project has been delayed since then due to technical complexities and some resistance by traditional insurance agents and companies who fear losing business.
Foreign interest in India's insurance sector has increased after the FDI cap was raised to 100%, with IRDAI approving two proposals by global insurers (Image generated using AI) 
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