India Opens Insurance Market to Full Foreign Ownership with New Laws
India's insurance sector has seen major changes after the government passed new investment laws. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, now permits full foreign ownership in re/insurance firms. This shift has already led to the launch of two new companies: Allianz Jio Reinsurance Limited and Kiwi General Insurance Limited.
Both businesses recently received official approval to start operations from the Insurance Regulatory and Development Authority of India (IRDAI).
The process began in July 2025 when IRDAI approved Kiwi General Insurance's R1 application. The insurer was co-founded by Neelesh Garg, the former CEO of Tata AIG General Insurance. Meanwhile, Allianz Europe B.V. and Jio Financial Services Limited set up their reinsurance joint venture, Allianz Jio Reinsurance Limited, in September 2025.
By March 2026, the venture had increased its capital from ₹500 crore to over ₹1,000 crore. Major investors included Allianz and Jio Financial (each holding 49%), Reliance Strategic Investments (2%), and later State Bank of India and HDFC Life. Jio Financial itself contributed ₹150 crore by acquiring 14.74 crore equity shares at ₹10 each.
IRDAI's 134th Meeting focused on updating regulations to match the new SBSR Act. To speed up the process, the authority issued in-principle approval for drafting and publishing new rules. Consultations with stakeholders followed to align the framework with the law.
Both Allianz Jio Reinsurance Limited and Kiwi General Insurance Limited now hold Certificates of Registration. They can begin business operations under India's updated regulatory system.
The approval of these two firms marks a turning point for India's insurance market. With full foreign investment now allowed, the sector is set for further expansion. Allianz Jio Reinsurance Limited and Kiwi General Insurance Limited will operate under the revised legal and financial guidelines established by IRDAI.
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