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LIC MD Says 100% FDI Gives Regulators More Power, Hails Insurance Push

LIC Managing Director Dinesh Pant stated that allowing 100% Foreign Direct Investment in insurance grants greater power to the sector's regulators. He highlighted key reforms including the elimination of GST on individual life and health insurance policies to make protection more affordable. Pant praised the government's increased capital expenditure and its focus on achieving "Insurance for All by 2047." He also noted the positive economic outlook with a projected GDP growth upgrade to 7.4% for FY26-27.

Key Points: LIC MD on 100% FDI, GST Cut & Insurance for All by 2047

  • 100% FDI grants more power to regulators
  • GST on individual life/health insurance cut to 0%
  • Goal is Insurance for All by 2047
  • Capex increased to ₹12.2 lakh crore in Budget 2026
  • GDP growth projected at 7.4% for FY26-27
2 min read

100% FDI in Insurance sector has granted more power to the regulators: LIC MD

LIC MD Dinesh Pant discusses 100% FDI granting regulator power, GST reduction to 0%, and the govt's goal of Insurance for All by 2047.

"The budget, along with recent policy changes, indicates the government's strong focus on the insurance sector. - Dinesh Pant"

Mumbai, February 4

The government's recent announcement to introduce 100 per cent FDI in the insurance sector has granted "more power to the regulators," said LIC MD, Dinesh Pant.

He further noted that India's focus on its Insurance sector through major announcements in Budget 2026, along with recent policy changes such as GST reduction and the insurance amendment bill (announced in December) shows government's intent towards "recognition of insurance as a historical driver of economic growth and its importance in bridging India's protection gap."

In an interview to ANI, Pant emphasises on government's continued efforts towards achieving its goal of "Insurance for All by 2047."

He says, "The budget, along with recent policy changes, indicates the government's strong focus on the insurance sector."

Speaking about the recent GST reduction and the insurance amendment bill, he said, "Key reforms include GST reduction and the insurance amendment bill (December), which introduced 100% FDI, granted more powers to regulators, and reduced net worth requirements for insurers."

The government recently announced a reduction in GST on individual life and health insurance from 18 per cent to nil, effective September 22, 2025. All individual life insurance (Term, ULIP, Endowment) and health insurance (Individual, Family Floater, Senior Citizen) policies are now exempt from GST, helping insurance companies pass more savings to you.

This move is intended to make essential financial protection more affordable for the general public.

"The government is also pushing insurance companies to rethink expense allocation and improve the quality of services, particularly regarding distribution costs," said Pant in the interview.

Talking about the capex increase announced in Budget 2026. He said, "The budget increased capital expenditure (capex) from 11.4 to 12.2 lakh crore."

Pant views this as a significant improvement, especially given the 97 per cent capex utilisation in the previous year, which has a multiplier effect on the economy and infrastructure development. He also highlights the government's management of fiscal deficit and borrowing levels while increasing capex as "really appreciable."

Talking about the economic outlook, he said, "The GDP growth rate for FY26-27 is projected at 7.4%, an upgrade from 6.5%. Despite positive economic indicators, there has been market volatility and a weakening rupee following international trade deals."

- ANI

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Reader Comments

R
Rohit P
100% FDI sounds good for bringing in global expertise and capital, but I hope our regulators are truly empowered and vigilant. We need strong Indian oversight to ensure these foreign companies don't just chase profits but actually serve the Indian customer well.
A
Aditya G
"Insurance for All by 2047" is an ambitious vision. The focus on reducing the protection gap is crucial. However, the real challenge is penetration in rural areas. Policies need to be simpler and more affordable for farmers and daily wage workers.
S
Sarah B
As an expat working here, it's encouraging to see such focused reforms. A robust insurance sector is a sign of a mature economy. The capex increase and controlled fiscal deficit are positive signals for long-term investors like us.
K
Karthik V
While the intent is good, I'm skeptical. More power to regulators is fine, but will it translate to better grievance redressal for us? I've had a terrible time with my claim settlement. Hope service quality improves as the MD says.
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Nisha Z
Appreciate the government's focus. But alongside FDI, we need strong financial literacy drives. Many in my family still see insurance as an expense, not protection. The benefits of these reforms must be communicated in simple terms on the ground.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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