In a capital-intensive market like insurance, the proposal will help inject substantial capital into the sector, enabling insurers to expand their operations, enhance their product offerings, and strengthen financial reserves
Balachander Sekhar, Co-founder and Chief Executive Officer, RenewBuy
Sanjeev Mantri, MD & CEO, ICICI Lombard
Venky Iyer - Managing Director & Chief Executive Officer at Tata AIA Life Insurance:
Jude Gomes, MD & CEO, Ageas Federal Life Insurance
FinTech BizNews Service
Mumbai, February 1, 2025: Union Minister of Finance and Corporate Affairs, Smt Nirmala Sitharaman presented the union budget for the FY2025-26 in the Parliament today. The FM has made an announcement to allow 100% Foreign Direct Investment (FDI) in the insurance sector.
Sanjeev Mantri, MD & CEO, ICICI Lombard :
"The Budget heralds a defining phase in India's insurance evolution. The liberalization of FDI norms signifies not just capital inflow, but a fundamental shift in how we can revolutionize insurance penetration in India. This reform will enable us to bring global best practices, enhanced underwriting capabilities, and innovative InsurTech solutions to serve our diverse customer base.
The healthcare infrastructure push, particularly in cancer care, comes at a crucial juncture. As insurers, we see this as an opportunity to design specialized health coverage products that can complement the expanding medical infrastructure. This, combined with India's emerging position as a medical tourism hub, allows us to create comprehensive cross-border health insurance solutions.
The transformative personal tax reforms will boost individual’s disposable income. This increased financial capacity, coupled with growing awareness of protection needs, presents a unique opportunity for the insurance sector. We anticipate a fundamental shift in financial planning behaviors, where insurance moves from being an afterthought to becoming a core element of household financial security.”
Naveen Chandra Jha, MD & CEO, SBI General Insurance:
“Budget 2025 marks a transformative step for the insurance sector in India, particularly with the introduction of 100% FDI. This reform is set to drive deeper market penetration by attracting greater capital inflows, fostering competition, and integrating global best practices.
The government's commitment to strengthening healthcare infrastructure, including the establishment of Day Care Cancer Centres in district hospitals, is a significant step toward improving critical care access. At SBI General, we remain dedicated to bridging the protection gap by ensuring wider penetration of health insurance across urban and rural India.
Additionally, the proposed tax reforms, including TDS rationalization and increased thresholds for senior citizens, will empower taxpayers and promote greater financial inclusion. Collectively, these initiatives lay the foundation for a robust insurance ecosystem, supporting the government's vision of 'Insurance for All' by 2047.”
Balachander Sekhar, Co-founder and Chief Executive Officer, RenewBuy:
"The government’s announcement to allow 100% Foreign Direct Investment (FDI) in the insurance sector will help facilitate entry of more players into the Indian market, thereby ushering in a new wave of competition, innovation and growth. This influx will drive Indian insurers to adopt global best practices in product and processes, innovation as well as cutting-edge technologies. All of these can further help improve underwriting, claims management and customer service.
In a capital-intensive market like insurance, the proposal will help inject substantial capital into the sector, enabling insurers to expand their operations, enhance their product offerings, and strengthen financial reserves. It can also impact improved margins for Indian insurers, listing of insurance companies and newer tax rules. We appreciate and welcome this initiative by the government."
Srikanth Kandikonda, Chief Financial Officer, ManipalCigna Health Insurance:
"We welcome the government’s decision to increase the FDI limit in the insurance sector from 74% to 100%. This progressive move will drive greater capital inflows into the sector, also improve insurance penetration.
A key highlight of the Union Budget is the significant relief for the middle class, with no income tax payable on earnings up to ₹12 lakh under the new tax regime. This translates into greater income in the hands of people, empowering individuals to invest in financial security tools like health insurance. At ManipalCigna Health Insurance, our focus remains on India’s missing middle population, and this initiative aligns perfectly with our commitment to expanding access to quality healthcare protection.
Additionally, the government’s plan to establish 200 daycare cancer centres in district hospitals by 2025-26 is a commendable step toward strengthening healthcare accessibility. These centers will bridge critical care gaps, ensuring timely and affordable treatment for cancer patients across India. We look forward to supporting initiatives that enhance healthcare access and financial protection for all.’’
Mr. Jude Gomes, MD & CEO, Ageas Federal Life Insurance:
"Ageas Federal Life Insurance has already experienced the positive impact of enhanced foreign investment, having been one of the first Indian insurers to embrace the 74% FDI limit. This move has driven innovation, operational efficiency, and customer-centric solutions within the industry. The government's decision to increase the FDI limit in the insurance sector to 100% is a landmark reform that will significantly strengthen the industry by attracting fresh capital, global expertise, and cutting-edge innovation. This move aligns seamlessly with the vision of ‘Insurance for All’ by 2047, as it will enhance financial inclusion and drive deeper insurance penetration across both urban and rural India. Additionally, it will provide insurers with greater financial flexibility to expand their reach, address the evolving needs of policyholders, and contribute to the country’s overall economic growth.
Furthermore, the revamped Central KYC Registry is a welcome step toward strengthening data security and ensuring a seamless, trusted experience for customers. By prioritizing transparency and ease of doing business, the government is laying a strong foundation for a more resilient and digitally empowered financial ecosystem. At Ageas Federal Life Insurance, we wholeheartedly welcome these progressive reforms and look forward to leveraging these opportunities to expand our reach and further our mission of securing a fearless future for individuals across India."
Venky Iyer - Managing Director & Chief Executive Officer at Tata AIA Life Insurance:
“The Finance Minister delivered a growth-oriented budget while staying firmly on the path of fiscal consolidation pegging the fiscal deficit for FY 26 at 4.4%. A massive Rs1 lakh crore in personal tax relief directed at the middle class, will boost consumption, and enable households to invest in their financial security.
Initiatives around channelizing credit to the MSME sector with focus on labour intensive manufacturing, facilitating investments, smoothening the processes in the exports arena, reforms around the ease of doing business with an overall emphasis on minimizing onerous regulations augur well for the economy and its participants.
At Tata AIA, we stay committed to partnering with Individuals and Enterprises in their growth journey through our life insurance solutions.”
