Though the Budget proposal to increase the foreign direct investment (FDI) limit in the insurance sector to 100 per cent from the current 74 per cent is expected to bring in independent foreign insurers into the segment, as they no longer have to look for a minority Indian partner, but for them navigating the complexities of distribution landscape in the Indian market will require a considerable effort, said industry insiders.
In the Indian insurance market, bank-led distribution dominates the private life insurance sector, while the agency channel is preferred for non-life insurance, making it challenging for foreign insurers to navigate