The Indian government is considering allowing 100% foreign direct investment (FDI) in insurance intermediaries, so as to give a boost to the sector in attracting more funds.
The government's FDI policy, at present, allows a maximum of 49% foreign investment in the insurance sector, which includes insurance intermediaries. The intermediary services include insurance broking, third party administrators, surveyors and loss assessors.
Sources said that there is a need to de-link the FDI cap in insurance intermediaries from that for insurance companies, reports Press Trust of India.
Representations have been made to the government that these intermediary services should be treated at par with other financial services intermediaries, where 100% foreign investment is permitted.