Business
03 Aug, 2026
ICICI Lombard says 100 pc FDI can make insurance more cheaper
Business To Business, New Delhi, 03 August, 2026: ICICI Lombard General Insurance on Monday said the government's decision to allow 100% foreign direct investment (FDI) in the insurance sector could make insurance products more affordable by increasing market penetration and scale.
Speaking at the company's 25th anniversary event, Sanjeev Mantri said that greater foreign participation is expected to expand the customer base and improve operating efficiencies.
Mantri explained that:
- Higher insurance penetration would increase the overall risk pool.
- A larger customer base would help spread costs more efficiently.
- Improved scale could reduce the cost per policy, making insurance covers more affordable for consumers.
"The larger the pool becomes, the more efficient the cost per unit will get addressed," he said.
The remarks underscore the industry's expectation that opening the sector to full foreign ownership could attract fresh capital, foster greater competition and innovation, and ultimately improve the affordability and accessibility of insurance products in India.