India, Feb. 6 -- The Indian insurtech industry is at a critical juncture with the lifting of all caps on foreign investment, but are domestic players and insurance startups bullish or bearish about the entry of new competition from multinational rivals?

The Union Budget 2025 opened the insurance sector to 100% foreign direct investment (FDI), removing the 74% cap, with the condition that the premium funds remained in India.

"This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified," Finance Minister Nirmala Sitharaman said in her budget speech.

FDI, which allows companies from one cou...