For decades, India’s insurance challenge has been one of awareness, purchasing power parity and trust. A sustained focus on urban markets and standardised products led to low penetration, limited risk capacity and persistent protection gaps. This left numerous households uninsured. Image for representational purposes only. (Unsplash) The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, allowing 100 percent Foreign Direct Investment (FDI), marks a structural shift. Foreign participation was capped at 24 percent when privatisation reopened in the early 2000s to build domestic capability. Over the past 25 years, the limit rose from 26 percent in 2000 to 49 percent in 2015, 74 percent in 2021 and is now fully liberalised. The key question is: “Will this reform finally make insurance more affordable and accessible for consumers?” The answer lies in how higher capital, deeper risk capacity and stronger competition translate into outcomes across pricing, products, reach, underwriting and service quality. Higher capital and deeper reinsurance capacity With 100 percent FDI permitted, more insurers and reinsurers can establish or expand operations in India, …