New Delhi, Dec. 18 -- Can India's insurance sector help mobilize more long-term capital? How much of a difference will the Centre's proposal of raising its foreign direct investment (FDI) cap to 100% from 74% make?

The sector was opened up to foreign insurers via joint ventures (JVs) in 2000, but state-run LIC's dominance remains mostly intact. After the FDI cap was lifted to 74% in 2021, a few foreign insurers raised their stakes in JVs and we saw one new entry.

Full ownership would mean no local partner can block key plans, so those stakes might rise further. Will new players enter?

The Indian market's allure is up for another test. India's insurance coverage needs to widen, but it's a closely regulated sector. While tight controls a...