The Indian government is considering allowing 100 percent foreign direct investment (FDI) in insurance intermediaries, according to reports.
Citing sources, The Economic Times of India said that the move would serve as a boost to the sector in attracting more funds.
At present, the Indian government’s FDI policy allows a maximum of 49 percent foreign investment in the insurance sector, which includes insurance intermediaries. The intermediary services include insurance broking, third party administrators, surveyors and loss assessors.
The publication noted that its sources had also said that there is a need to de-link the FDI cap in insurance intermediaries from that for insurance companies.
Representations have been made to the government that these intermediary services should be treated at par with other financial services intermediaries, where 100 percent foreign investment is permitted.