<h1>Government Proposes 100% Foreign Direct Investment in Insurance Sector; Amendments to Key Acts Required for Implementation</h1> The government plans to increase the foreign direct investment (FDI) limit in the insurance sector to 100% from the current 74%, as announced by the Finance Minister during the 2025-26 Budget presentation. This change aims to attract more foreign investment, provided companies invest the entire premium within India. Amendments to the Insurance Act 1938, the Life Insurance Corporation Act 1956, and the Insurance Regulatory and Development Authority Act 1999 will be necessary for implementation. The move is expected to boost insurance penetration and job creation. Currently, India has 25 life insurance and 34 non-life insurance companies.