Strategic Evolution of the Indian Insurance Market Following the 100% FDI Cap Increase

The move to 100% FDI in Indian insurance shifts bargaining power toward foreign investors, enabling greater capital control and potential standalone entries. Structural changes include evolving distribution economics, emergence of Managed General Agents (MGAs), and increased foreign influence on compliance and product design. Profitability remains constrained by participating product rules limiting shareholder surplus extraction. AI adoption is accelerating in underwriting, claims adjudication, fraud detection, and customer servicing, with industry straight-through processing benchmarks around 65–75% across segments.