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Increasing the limit for foreign direct investment in India's insurance sector would spur the inflow of capital, thereby indirectly helping increase insurance penetration in the country, reported Moneycontrol.com.
Strong capital investments and an increase in manpower will allow insurers to explore underinsured markets.
An insurance sector expert said "for long, the insurance sector has been waiting for adequate funds for its expansion" and the FDI hike would "definitely give it the much needed fillip."