Passage of Insurance Bill to play a catalytic role for sector growth: LIC

New Delhi: Insurance legislation passed by Parliament earlier this week will be a game-changer for the sector, boosting growth and making insurance more accessible and affordable by fostering competition, LIC CEO and Managing Director R Doraiswamy said.

In a statement on Friday, Doraiswamy said the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025 places strong emphasis on policyholder protection and regulatory robustness. “By updating legacy provisions and strengthening governance norms, the amendments reinforce transparency, accountability and prudential oversight across the insurance ecosystem,” he said, adding that this would translate into better safeguards, improved service standards and greater trust among policyholders.

Parliament on Wednesday passed the Bill, which allows 100 per cent foreign direct investment (FDI) in the insurance sector. Finance Minister Nirmala Sitharaman, replying to the debate, underlined the need to deepen insurance penetration and awareness, and stressed that higher capital infusion would support long-term growth, technology adoption and globally competitive products. Removing the FDI cap, she said, would act as a catalyst while creating a more investor-friendly environment.

Doraiswamy noted that the amendments would strengthen regulatory processes by mandating standard operating procedures and public consultations for all IRDAI regulations, ensuring transparency and consistency. The Bill also enables greater operational flexibility and innovation, allowing insurers to design products for evolving needs such as retirement, longevity and health protection.

He said the reforms would help expand coverage among underserved groups, including rural households, informal workers, women and first-time policyholders, while enabling LIC to leverage technology and support the national goal of universal insurance coverage as India moves towards becoming a developed economy

by 2047.