The government has formally paved the way for 100% foreign ownership in insurance companies, but industry experts say the latest liberalisation is unlikely to trigger a rush of new foreign entrants setting up wholly-owned insurers in the country. The government has notified the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, aligning foreign investment limits with the amended Insurance Act, which allows full foreign ownership in insurers. References to the earlier 74% cap have been removed, and foreign direct investment has been expanded to include investments by foreign venture capital investors under the non-debt instruments rules in the Foreign Exchange Management Act.