Sabka Bima Sabki Suraksha Bill 2025: Why Star Health, LIC shares are in focus today
Emkay Global said the exclusion of composite licensing and open architecture in the agency channel alleviated long-standing concerns for Star Health and Allied Insurance.
- Dec 17, 2025,
- Updated Dec 17, 2025 8:16 AM IST
Emkay Global Financial Services on Wednesday said the Union government’s introduction of the Sabka Bima Sabki Suraksha (Amendment of Insurance Laws) Bill, 2025 was broadly aligned with its expectations and supportive for listed insurers, with brand strength, distribution reach and cost efficiency remaining key success factors.
The brokerage noted that the bill sought to overhaul three existing laws including the Insurance Act, 1938, the IRDA Act, 1999, and the LIC Act, 1956, with a focus on improving insurance penetration, operational efficiency and regulatory flexibility.
Emkay Global highlighted that several proposals included in the draft Insurance Laws (Amendment) Bill, 2022 did not feature in the final legislation. These included the absence of composite licensing, open architecture for individual agents, reduction in capital requirements for primary insurers, and permission to offer ancillary services and distribute other financial products. The brokerage said it had earlier argued against these changes, and their omission came as a relief for certain listed players.
In particular, Emkay Global said the exclusion of composite licensing and open architecture in the agency channel alleviated long-standing concerns for Star Health and Allied Insurance (Star Health) while Life Insurance Corporation of India also stood to benefit from the absence of open architecture for individual agents.
Among the key provisions included in the final Bill, Emkay Global pointed to permission for 100 per cent foreign direct investment in insurance, amendments to Section 35 allowing mergers between insurance and non-insurance companies, easing of net owned fund requirements for foreign reinsurance branches to Rs 100 crore from Rs 500 crore, and greater regulatory flexibility on investment norms through delegation of powers to the IRDA.
The brokerage said the insertion of sub-section 2A in Section 40 of the Insurance Act was particularly significant, as it explicitly empowered the regulator to specify limits on commissions, remuneration and rewards paid to agents and intermediaries. Emkay Global expected this to result in a gradual reduction in commissions and operating expenses across the sector, with a likely shift away from high upfront commissions towards a trail-based commission model.
While distributors may continue to view insurance as a push product, Emkay Global said the increasing scale and maturity of the industry over the past two decades should structurally support lower distribution and operating costs over time.
Emkay Global Financial Services on Wednesday said the Union government’s introduction of the Sabka Bima Sabki Suraksha (Amendment of Insurance Laws) Bill, 2025 was broadly aligned with its expectations and supportive for listed insurers, with brand strength, distribution reach and cost efficiency remaining key success factors.
The brokerage noted that the bill sought to overhaul three existing laws including the Insurance Act, 1938, the IRDA Act, 1999, and the LIC Act, 1956, with a focus on improving insurance penetration, operational efficiency and regulatory flexibility.
Emkay Global highlighted that several proposals included in the draft Insurance Laws (Amendment) Bill, 2022 did not feature in the final legislation. These included the absence of composite licensing, open architecture for individual agents, reduction in capital requirements for primary insurers, and permission to offer ancillary services and distribute other financial products. The brokerage said it had earlier argued against these changes, and their omission came as a relief for certain listed players.
In particular, Emkay Global said the exclusion of composite licensing and open architecture in the agency channel alleviated long-standing concerns for Star Health and Allied Insurance (Star Health) while Life Insurance Corporation of India also stood to benefit from the absence of open architecture for individual agents.
Among the key provisions included in the final Bill, Emkay Global pointed to permission for 100 per cent foreign direct investment in insurance, amendments to Section 35 allowing mergers between insurance and non-insurance companies, easing of net owned fund requirements for foreign reinsurance branches to Rs 100 crore from Rs 500 crore, and greater regulatory flexibility on investment norms through delegation of powers to the IRDA.
The brokerage said the insertion of sub-section 2A in Section 40 of the Insurance Act was particularly significant, as it explicitly empowered the regulator to specify limits on commissions, remuneration and rewards paid to agents and intermediaries. Emkay Global expected this to result in a gradual reduction in commissions and operating expenses across the sector, with a likely shift away from high upfront commissions towards a trail-based commission model.
While distributors may continue to view insurance as a push product, Emkay Global said the increasing scale and maturity of the industry over the past two decades should structurally support lower distribution and operating costs over time.