Maximum foreign equity share allowed in an insurance company has been raised to 74% in 2021 [from 49% up to 2020]. FDI in pension funds remains at 49%. Such investments can be done through the automatic route (i.e., without prior approval). Branches of foreign insurance companies are not permitted, but branches of reinsurance companies are permitted (since 2015).  Insurance companies having foreign investment are now (since 2021) required to appoint a resident Indian Citizen to at least one high-level executive position among the Chairsperson of the Board, the Managing Director and the Chief Executive Officer, as well as to the majority of Director-level positions [previously the ownership and control of Indian insurance companies and Indian pension funds were required to be at all times in the hands of resident Indian entities; such 'control' restriction was assumed to refer to a requirement for the majority of the board of diretors be in the hands of resident Indian citizens. Hence, no change in this respect]. Foreign investment in intermediary (auxiliary) insurance services remains allowed up to 100%, but where foreign shareholding is majority, local incorporation is required and at least one executive from among the Chairman of the Board of Directors or the Chief Executive Officer or Principal Officer or Managing Director of the insurance intermediary shall be a resident Indian citizen.
"5.2.22 INSURANCE
5.2.22.1 Insurance Company  | % of Equity/FDI Cap: 74% [previously 49%] | Entry Route: Automatic
5.2.22.2 Intermediaries or Insurance Intermediaries including insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, Surveyors and Loss Assessors and such other entities, as may be notified by the Insurance Regulatory and Development Authority of India from time to time. | % of Equity/FDI Cap: 100% | Entry Route: Automatic
5.2.22.3 OTHER CONDITIONS
(a)  No Indian Insurance company shall allow the aggregate holdings by way of total foreign investment in its equity shares by foreign investors, including portfolio investors, to exceed seventy-four [previously forty-nine] percent of the paid-up equity capital of such Indian Insurance company. [...]
(d) (i) In an Indian insurance company having foreign investment - 
i. a majority of its directors;
ii. a majority of its Key Management Persons; and
iii. at least one among the Chairsperson of its Board, its Managing Director and its Chief Executive Officer 
shall be resident Indian Citizens [...]
(i) The insurance intermediary that has majority shareholding of foreign investors shall undertake the following: 
i. be incorporated as a limited company under the provisions of the Companies Act, 2013; 
ii. at least one from among the Chairman of the Board of Directors or the Chief Executive Officer or Principal Officer or Managing Director of the insurance intermediary shall be a resident Indian citizen; 
iii. shall take prior permission of the Authority for repatriating dividend;  [...]" (Government of India/Ministry of Commerce and Industry (2021), Press Note No. 2 (2021 Series)) 
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Previously: up to 2021
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"CHAPTER 3: GENERAL CONDITIONS ON FDI [...]
3.4   ENTRY ROUTES FOR INVESTMENT 3.4.1 Investments can be made by non-residents in the equity shares/fully, compulsorily and mandatorily convertible debentures/fully, compulsorily and mandatorily convertible preference shares of an Indian company, through the Automatic Route or the Government Route. Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment. Under the Government Route, prior approval of the Government of India is required. Proposals for foreign investment under Government Route, are considered by respective Administrative Ministry/Department. 
[...]
3.5   CAPS ON INVESTMENTS
3.5.1 Investments can be made by person resident outside India in the capital of a resident entity only to the extent of the percentage of the total capital as specified in the FDI policy. The caps in various sector(s) are detailed in Chapter 5 of this Circular. 
3.6   ENTRY CONDITIONS ON INVESTMENT
3.6.1 Investments by non-residents can be permitted in the capital of a resident entity in certain sectors/activity with entry conditions. Such conditions may include norms for minimum capitalization, lock-in period, etc. The entry conditions in various sectors/activities are detailed in Chapter 5 of this Circular.
[...]
5.2 PERMITTED SECTORS
a) In the following sectors/activities, FDI up to the limit indicated against each sector/activity is allowed, subject to applicable laws/regulations; security and other conditionalities. In sectors/activities not listed below, FDI is permitted up to100% on the automatic route, subject to applicable laws/regulations; security and other conditionalities. [...]
c) Foreign investment in sectors under Government approval route resulting in transfer of ownership and/or control of Indian entities from resident Indian citizens to nonresident entities will be subject to Government approval. Foreign investment in sectors under automatic route but with conditionalities, resulting in transfer of ownership and/or control of Indian entities from resident Indian citizens to non-resident entities, will be subject to compliance of such conditionalities. 
[...]
5.2.22 INSURANCE
5.2.22.1 Insurance Company  | % of Equity/FDI Cap: 49% | Entry Route: Automatic
5.2.22.2 Intermediaries or Insurance Intermediaries including insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, Surveyors and Loss Assessors and such other entities, as may be notified by the Insurance Regulatory and Development Authority of India from time to time. | % of Equity/FDI Cap: 100% | Entry Route: Automatic
5.2.22.3 OTHER CONDITIONS
(a)  No Indian Insurance company shall allow the aggregate holdings by way of total foreign investment in its equity shares by foreign investors, including portfolio investors, to exceed forty-nine percent of the paid-up equity capital of such Indian Insurance company. [...]
(d)  An Indian Insurance company shall ensure that its ownership and control remains at all times in the hands of resident Indian entities as determined by Department of Financial Services/ Insurance Regulatory and Development Authority of India as per the rules/regulation issued by them from time to time.  [...]
(g)  The foreign equity investment cap of 100 percent shall apply on the same terms as above to insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, Surveyors and Loss Assessors and such other entities, as may be notified by the Insurance Regulatory and Development Authority of India from time to time. However, the condition of Indian owned and controlled, as specified in Clause (d) above, shall not be applicable to Intermediaries and Insurance Intermediaries and composition of the Board of Directors and key management persons shall be as specified by the concerned regulators from time to time.[...]
(i)  The insurance intermediary that has majority shareholding of foreign investors shall undertake the following:
i. be incorporated as a limited company under the provisions of the Companies Act, 2013;
ii. at least one from among the Chairman of the Board of Directors or the Chief Executive Officer or Principal Officer or Managing Director of the insurance intermediary shall be a resident Indian citizen;
iii. shall take prior permission of the Authority for repatriating dividend; 
iv. shall bring in the latest technological, managerial and other skills;
[...]
5.2.23 PENSION SECTOR 
Pension Sector | % of Equity/FDI Cap: 49% | Entry Route: Automatic
OTHER CONDITIONS [...]
(iii)  An Indian pension fund shall ensure that its ownership and control remains at all times in the hands of resident Indian entities as determined by the Government of India/PFRDA as per the rules/regulation issued by them from time to time. [...]" (Government of India/Ministry of Commerce and Industry (2020), Consolidated FDI Policy (Effective from October 15, 2020))
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"2C. Prohibition of transaction of insurance business by certain persons. -- (1) Save as hereinafter provided, no person shall, after the commencement of the Insurance (Amendment) Act, 1950 (47 of 1950), begin to carry on any class of insurance business in 2[India] and no insurer carrying on any class of insurance business in 2[India] shall after the expiry of one year from such commencement, continue to carry on any such business unless he is--
(a) a public company, or
(b) a society registered under the Co-operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State relating to co-operative societies, or
(c) a body corporate incorporated under the law of any country outside 3[India] not being of the nature of a private company [...]
Provided also that no insurer other than an Indian insurance company shall begin to carry on any class of insurance business in India under this Act on or after the commencement of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).[...]" (The Insurance Act, 1938, as amended)
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Previously: up to 2019
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"5.2.22 INSURANCE
5.2.22.1 (i) Insurance Company (ii) Insurance Brokers (iii) Third Party Administrators (iv) Surveyors and Loss Assessors(i) Insurance Company (ii) Insurance Brokers (iii) Third Party Administrators (iv) Surveyors and Loss Assessors (v)Other Insurance Intermediaries appointed under the provisions of Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) | % of Equity/FDI Cap: 49% | Entry Route: Automatic
5.2.22.2 Other Conditions
(a)  No Indian Insurance company shall allow the aggregate holdings by way of total foreign investment in its equity shares by foreign investors, including portfolio investors, to exceed forty-nine percent of the paid up equity capital of such Indian Insurance company. [...]
(d)  An Indian Insurance company shall ensure that its ownership and control remains at all times in the hands of resident Indian entities as determined by Department of Financial Services/ Insurance Regulatory and Development Authority of India as per the rules/regulation issued by them from time to time. [...]
(g)  The foreign equity investment cap of 49 percent shall apply on the same terms as above to Insurance Brokers, Third Party Administrators, Surveyors and Loss Assessors and Other Insurance Intermediaries appointed under the provisions of the Insurance Regulatory and Development Authority Act,1999 (41 of 1999). 
[...]
5.2.23 Pension Sector
Pension Sector | % of Equity/FDI Cap: 49% | Entry Route: Automatic
OTHER CONDITIONS [...]
(iii)  An Indian pension fund shall ensure that its ownership and control remains at all times in the hands of resident Indian entities as determined by the Government of India/PFRDA as per the rules/regulation issued by them from time to time.[...]" (Government of India/Ministry of Commerce and Industry (2017), Consolidated FDI Policy (Effective from August 28, 2017))
Government of India/Ministry of Commerce and Industry (2021), Press Note No. 2 (2021 Series)
Government of India/Ministry of Commerce and Industry (2020), Consolidated FDI Policy (Effective from October 15, 2020)
The Insurance Act, 1938, as amended
Government of India/Ministry of Commerce and Industry (2017), Consolidated FDI Policy (Effective from August 28, 2017)
[<a href="https://dpiit.gov.in/sites/default/files/pn2-2021.pdf">PN</a>],[<a href="https://dpiit.gov.in/sites/default/files/FDI-PolicyCircular-2020-29October2020_0.pdf">Policy</a>],[<a href="https://www.indiacode.nic.in/handle/123456789/2304?view_type=browse&sam_handle=123456789/1362">Act</a>],[<a href="https://dpiit.gov.in/sites/default/files/CFPC_2017_FINAL_RELEASED_28.8.17_0.pdf">Policy</a>]