The Indian government is mulling allowing 100% foreign direct investment (FDI) in insurance broking to give a boost to the sector, sources say.
Representations have been made to the government time and again for insurance broking firms to be treated at par with other financial services intermediaries, where 100% foreign investments are permitted, reports Press Trust of India.
Currently, the FDI policy imposes a ceiling of 49% on foreign holdings of stakes in insurance brokers, insurance companies, third party administrators, surveyors and loss assessors, as defined by the Department of Industrial Policy and Promotion (DIPP).
The DIPP is an arm of the Commerce and Industry Ministry which deals with FDI related matters and promotes ease of doing business in the country.
"Insurance broking is like any other financial or commodity broking services. The issue was recently discussed in a high level inter-ministerial meeting. The government is positively looking at the matter," sources said.