What is the rationale behind such a Bill?
Raising the limit on foreign equity participation in insurance means the caveat that such firms remain Indian-owned and controlled is now removed. This is expected to attract prominent global insurers to set up shop in India, which will take care of liquidity pressures. It will also help companies achieve growth and will strengthen their solvency ratio, increase insurance penetration, give access to the best in class know-how and deepen product expertise.
