Increase in FDI To Woo More Foreign Players

New Delhi: Increasing foreign investment limit in the insurance sector to 100 per cent from 74 per cent is likely to attract more global players in the growing Indian insurance market, Moody’s Ratings said on Tuesday.

Additionally, strong premium growth is expected to boost profitability of the sector. Currently, many foreign insurers are present in the country through joint ventures and could seek to increase their ownership stakes in their Indian affiliates following this change in regulation. “We view foreign investment as credit positive because it increases product innovation.