New Delhi, Feb. 1 -- The government in its Union Budget for 2025-26 proposed raising the foreign direct investment (FDI) limit for India's insurance sector to 100% from 74%-meeting a long-awaited industry demand. So why did the stocks of most Indian insurance companies end the day flat to negative? The simple reason for that being that well-established life insurance companies in India don't need the expertise of foreign players through strategic stake sale any longer.

Also, the interest of foreign companies in Indian insurance has declined over the years. Standard Life (now known as ABRDN Plc.), New York Life Insurance Co., Old Mutual Ltd after partnering with HDFC Life Insurance Co. Ltd, Max Life and Kotak Life, respectively, have exit...